Negotiations of the terms by which the UK leaves the European Union begin this week, and the government has confirmed that Brexit secretary David Davies will be in Brussels.
He will meet with the EU's chief negotiator Michel Barnier for talks that begin on Monday.
Markets have been thrust into confusion since the general election result cast doubts on the stability of the government and its likely ability to carry out talks with a reduced mandate.
Further uncertainty has been cast upon the talks after opposition party leaders called for a new cross-party approach to the Brexit negotiations in the wake of the election.
"The Brexit talks are likely to be tough and have the capacity to produce negative pressure for the pound," says Jane Foley at Rabobank.
Nigel Green, chief executive of deVere Group, adds: "The financial markets had almost priced in a hard Brexit and will now have to quickly reassess their position."
He continues: "As this adjustment takes place we can expect the uncertainty in the financial markets not only to continue but to intensify."
Federal Reserve monetary policy report
On Tuesday, the Fed reports to Congress its semi-annual report - previously called the Humphrey-Hawkins report - prepared by the Board of Governors and presented by chair Janet Yellen.
Members of Congress are likely to question Yellen on the Fed's current interest rate strategy.
Following the quarter point rise to 1-1.25% delivered last week, speculation is split on whether the Fed will deliver a forecast third rise this year in September, and investors will hope Yellen's testimony provides clues.
Lower inflationary pressures and a dip in growth indicators in recent months, has led some market observers to doubt expectations of a September rate move.
Foley at Rabobank says: "The market’s confidence in a third 2017 rate hike has been diminishing as a result of the spate of mixed US economic data and most specifically the result of soft inflation data."
US and eurozone purchasing manager surveys
The major US purchasing manager survey is carried out by the Institute for Supply Management, and Friday's Markit report is more of a preview.
May's Markit composite PMI, which surveys business activity in both the manufacturing and services sectors stalled at 53.9 - the same as the previous month, and given recent slowness in other surveys, analysts believe another flat reading is likely.
Any index reading above 50 indicates expansion in business activity.
The eurozone surveys by Markit are expected to show continued expansion in the monetary union.
Manufacturing PMI is forecast at 56.8 in June, down slightly from 56.6 in May, while the services PMI is seen edging higher to 56.4 from 56.3.
The best of the rest
With underlying inflation below target and growth on trend, the Reserve Bank of New Zealand is expected to keep its main rate of interest on hold at 1.75% on Wednesday.
A day later, Norway's central bank is also expected to keep its main deposit rate on hold at 0.5%, although a more hawkish tone might be expected after the previous statement heralded a robust recovery.
Among the companies reporting earnings this week:
In the US, Adobe Systems and FedEx report interim results on Tuesday, while Oracle reports interims on Wednesday.
In the UK, Berkeley Group reports annual results on Wednesday.