EU Manufacturing, Services Data
Eurozone service and manufacturing data is expected to be closely monitored for an insight into the strength of the Eurozone economy ahead of the European Central Bank meeting Thursday.
Service sector growth is expected to show a nearly unchanged reading of 56.5 in January compared to 56.6 in the precious month, while economists forecast the manufacturing purchasing managers index cooled in January to a reading of 57.9 compared to a 58.1 reading in December.
Ahead of the data, the EUR/USD has pared gains amid fading investor optimism that the European Central Bank will soon announce plans to taper its lax monetary policy measures.
Energy Information Administration Weekly Inventory Report
A fresh batch of inventory data from the Energy Information Administration (EIA) on Wednesday is expected to show that U.S. crude stockpiles fell for the tenth-straight week.
Analysts forecast crude inventories fell by about 1.6 million barrels in the week ended Jan 19.
Crude oil futures settle higher on Tuesday amid optimism over ongoing OPEC-led output cuts while faster global economic growth is expected to boost oil demand growth.
UK Labor Market
Data from the Office for National Statistics is expected to show, average weekly earnings grew by 2.3% in November, in-line with wage growth in the previous month.
Economist forecast the unemployment rate, meanwhile, remained at 4.3% in November. Britons could see an uptick in wages, according to Michael Saunders, a member of the Bank’s monetary policy, as lower migration is expected to created “recruitment difficulties” for businesses.
GBP/USD rose 0.04% to $1.3996 its highest since June 2016.