On Monday, the National Association of Realtors is expected to report that existing home sales slipped to 4.80 million, the lowest reading since record-keeping began in 1999.

Consumer spending in Canada is expected to remain strong in December, as a Bloomberg News poll of economists reveals a consensus forecast for retail sales to rise 0.8 percent during the month.

UK retail sales are expected to rebound, which will help to curb fears of a sharp economic slowdown. A stronger than expected print could help the GBP/USD pair to rally.

Upcoming US economic data is highly anticipated, as the news will give insight into the status of inflation as well as the Federal Reserve’s stance.

If the Rightmove house prices confirm the recent RICS survey which reported housing prices fell for the sixth straight month, there may be a continued selloff of the pound.

A stronger-than-expected reading of any of the retail sales reports could help initiate a break higher in the NZD/USD pair.

Inflation control will likely remain the RBA’s main focus in the near-term. As a result, a better-than-expected net employment change may help propel AUD/USD towards 0.9100.

If Wednesday’s data is released in line with expectations, the prospects of a neutral BOE policy stance and an increasingly dovish Federal Reserve could lead GBP/USD to continue to climb.

Investor sentiment throughout the Euro-zone is anticipate to deteriorate further, as the German ZEW survey is forecasted to fall for the ninth straight month to a 15 year low of -45.0.

Upcoming UK data in line with expectations will highlight the issue of weak growth and strong inflation that the BOE faces.