Flash Germany Manufacturing PMI dropped to 51.0 from 51.2 in December, what is 2-month low. Analysts were predicting increase to 51.8. Private sector employment rose despite the introduction of a national minimum wage at the beginning of the year, as companies reported increased new orders and higher business requirements. Flash Germany Services Activity Index rose to at 52.7 from 52.1 in December, what is a 3-month high.

Both Eurozone Manufacturing and Services PMI were in line with market forecasts. Flash Eurozone Manufacturing PMI rose to 51.0 from 50.6 in December, what is a 6-month high, while Flash Eurozone Services PMI Activity Index increased to 52.3 from 51.6 in December what is a 3-month high.The recent oil price slump is also already feeding through to reduced prices, with average prices charged by companies dropping at the fastest rate for almost five years.

In the US session Existing Home Sales and Manufacturing PMI data was released. Existing Home Sales rose 2.4% to a seasonally adjusted annual rate of 5.04 million in December from a downwardly-revised 4.92 million in November. Analysts were expecting a rate of 5.08 million. From a year ago, December sales were higher by 3.5% and are now above year-over-year levels for the third straight month.

Separate report on Manufacturing PMI also missed market expectations on an increase to 54.1 and decreased to 53.7 points in January. Slower new business growth was a key factor weighing on the overall performance of the U.S. manufacturing sector in January.

From Eurozone, on Monday, German Ifo Business Climate figures will be released. Analysts are predicting an increase to 106.2 points. There will be no data release in the US session.

Figures to watch:

German Ifo Business Climate (Monday 10:00)