Danske Bank

In the euro area, we expect the ECB to leave the deposit rate unchanged at 2.00% in line with consensus and market pricing. Lagarde is likely to face questions on the recent strengthening of the euro but provide a neutral answer, not highlighting any target level.

The US Bureau of Labor Statistics (BLS) announced yesterday that the ongoing partial government shutdown will cause a delay to Friday's January Jobs Report release.

Monetary policy meetings are scattered throughout the week with the Reserve Bank of Australia (RBA) on Tuesday, National Bank of Poland on Wednesday and the Bank of England and ECB on Thursday.

In focus today In the euro area, we receive the first January inflation reports from Germany and Spain.

In focus today In the US, November import and export data is set for release today. The trade deficit has narrowed significantly

The main event will be tonight's FOMC meeting. We expect no monetary policy changes, in line with broad consensus and market pricing.

In Germany, the Ifo indicator for January is released. The PMI report released on Friday rebounded more than expected so it will be interesting to see if the Ifo index shows the same picture of the economy.

In the euro area, flash PMIs for January are set for release. In December, both services and manufacturing PMIs declined but from levels that still suggest quite modest growth in the final quarter of the year.

In the UK, focus turns to the December inflation print. While price pressures have eased recently, paving the way for potential Bank of England rate cuts, core inflation remains elevated at 3.2% y/y.