The U.S. dollar will continue to come under pressure this week backed by political themes and macroeconomic developments.

The FOMC meeting that is scheduled for Wednesday is expected to be a non-event but it could still bring some volatility.

The U.S. President Trump is expected to speak during week while other important data includes the ISM’s manufacturing PMI and Friday’s nonfarm payrolls report.

Elsewhere, the Eurozone GDP and flash inflation estimates will be key points to watch for while Australia reports on its quarterly inflation data.

Eurozone GDP and Inflation estimates

The economic data is likely to maintain the focus on the EURUSD which continues to enjoy a strong rally.

The data this week will see the PMI numbers coming out for the month of January.

Activity in the manufacturing and services sectors are expected to remain broadly stable.

The preliminary GDP data for the Eurozone will come out this week following the GDP figures from France and Germany.

This data could set the expectations for the Eurozone’s GDP for the third quarter ending December 2017.

Inflation estimates for the month of January will also be released this week.

Following the modest decline in the month of December, the preliminary inflation report will give a glimpse into the state of consumer prices for January.

However, no surprises are expected as inflation is expected to rise only gradually.