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.
"Nov PMI figures support our view that the eurozone economy will sustain solid growth into year-end, with the potential for further acceleration," says Chris Turner at ING.
In the UK, the November manufacturing index is seen edging higher to 56.5 from 56.3 in October.
Eurozone consumer prices (CPI)
Following October's static CPI reading at 1.4%, November's data, published on Thursday is expected to show a clear jump to 1.6% - closer to the European Central Bank's target rate of 2%.
If CPI were to climb closer to the ECB's target, it may cause some rethinking at the central bank, which is embarking on stimulus withdrawal but maintains it will not begin raising interest rates for some time to come - not until it has completed its tapering.
A stronger reading than that forecast would put both the pound and the dollar under pressure versus the euro.
Best of the rest
On Wednesday there's an update on third-quarter gross domestic product and upward revisions to the preliminary readings are expected. The annualised rate of US growth is expected to have expanded to 3.2% from the initial reading of 3%.
On the same day, the Federal Reserve's 12 individual districts present details on business conditions in the Beige Book report.
Tuesday's main events are US wholesale inventories and the UK Nationwide house price index.
In the eurozone on Wednesday are Eurostat reports on industrial confidence, consumer confidence, services sentiment and economic sentiment. Also in the UK, Tuesday sees the results of bank stress tests and Bank of England bank stress tests.
In the US, Tuesday's main results are from Sears and Wednesday is Burger King. On Thursday it's the turn of Barnes and Noble and Friday sees Hunter Oil.
In the UK, Monday brings Anglian Water and Canary Wharf Group Investments and Tuesday sees Asda report. On Wednesday it's Brewin Dolphin, Britvic and Investec Bank, while Thursday brings Daily Mail & General Trust and Green King.