00:01 United Kingdom Rightmove House Price Index (MoM) December -2.4% -1.9%

00:01 United Kingdom Rightmove House Price Index (YoY) December +4.0% +4.5% +5.4%

01:45 China HSBC Manufacturing PMI (Preliminary) December 50.8 51.0 50.5

The yen strengthened from a five-year low as investors assess U.S. economic data to see when the Federal Reserve will start to taper monetary stimulus. While 34 percent of economists surveyed by Bloomberg forecast the Fed will probably decide to reduce $85 billion in monthly bond purchases at its Dec. 17-18 meeting, futures traders bet it will keep interest rates near zero at least until the end of next year.

Reports from the Fed today are projected to show that U.S. manufacturing is improving. Industrial production probably rose 0.6 percent last month from October when it fell 0.1 percent, according to the median estimate of economists surveyed by Bloomberg News. A gauge of manufacturing in the New York region is likely to have advanced to a three-month high, a separate poll of economists shows.

The euro reached a one-month high against the pound ahead of European data on manufacturing and services. London-based Markit Economics will probably say today that its composite index for the services and manufacturing industries in the currency bloc rose to 52 in December from 51.7 in November, economists forecast.

The central bank’s quarterly Tankan business confidence report today showed sentiment among Japan’s largest manufacturers rose to the highest level since 2007.

EUR / USD: during the Asian session, the pair rose to $ 1.3760

GBP / USD: during the Asian session, the pair traded in the range of $ 1.6290-10

USD / JPY: on Asian session the pair fell to Y102.60

A busy schedule is expected to provide direction this week in thinned out Christmas markets as dealers look ahead to data releases from UK CPI on Tuesday, FOMC rate decision/minutes on Wednesday, UK Retail Sales on Thursday, followed by UK GDP on Friday.