A new year begins with a flurry of PMI releases across Europe and the UK, with markets forecasting the UKs manufacturing sector to fall to 46.5 from 47.2. This remains well off the 50-point figure that markets use as a benchmark indicator to see if there is growth in the that specific sector.
Later this week, there are some key inflation figures being released in Europe with German inflation data being released on Thursday. Markets expect inflation to rise to 3.8 percent which is an increase of 0.6 percent.
Alongside the release of German inflation, the eurozone will release their figures which markets are also expecting inflation to rise to 3 percent, up from 2.4 percent. This potentially signals that the rate cuts the European Central Bank have been implementing are yet to take full effect.
On Friday, markets also see the release of US Employment figures along with their ISM Non-Manufacturing Survey.
On the currency front, the pound has started the new year on the front foot against both the dollar and the euro, with the pound toying with 5-month highs against the dollar.