Economic preview: US inflation and PMI Friday
It's little more than two weeks until the final Federal Reserve meeting of the year and, as the minutes from the central bank's October/November meeting revealed, the board will be closely watching inflation measures.
Also of importance to the Fed, of course, are signs that the US economy is maintaining a healthy rate of growth - hopefully backed up by data on third-quarter gross domestic product and survey evidence from the country's purchasing managers.
US personal consumption expenditures (PCE)
PCE is the Fed's favoured measure of inflation, based not merely on prices but also consumer spending power.
On Thursday, PCE data for October is published and the core rate is expected to remain at 1.3% where it stood in September. The measure has remained below the Fed's 2% inflation target for more than 5 years.
Last week, minutes from the Fed's last policy meeting revealed that some board members were growing more concerned that persistently low inflation was becoming entrenched.
This can result in consumers putting off buying big-ticket items - preferring to wait and save up, or believe they can be bought more cheaply later on. The Fed is keen that this type of consumer behaviour does not lead to slower growth in spending and a negative impact on overall economic growth.
However, several members of the Fed board were "reasonably confident" that the economy and inflation would firm in the coming months and warrant additional rate hikes in the near term.
Unless Thursday's data surprise on the downside, it's likely the Fed will raise rates again at the December meeting. This would likely put further pressure on the pound against the US dollar.
PMI Friday - purchasing manager indexes
It's a big day on Friday for manufacturing growth indicators with purchasing manager updates from Japan, China, Germany and the European Union, the UK and the US.
Let's look first at the US, where the Institute for Supply Management (ISM) index is seen dipping slightly in November.
Analysts believe the index will slip to 58.5 from October's 58.7 as the rise in productivity that followed the damage and supply bottlenecks that followed Hurricanes Harvey and Irma subsides.
In the eurozone, growth in manufacturing activity has been impressive in recent months. This data should confirm an earlier purchasing manager survey this month that saw the manufacturing index rise to 60 in November from 58.5 in October.