FXStreet reports that according to analysts at Danske Bank, markets will continue to pay close attention to headlines regarding the spreading of the corona virus. Meanwhile, the global calendar is light today with the only scheduled release of the German IFO index for January.

"As the Chinese New Year has kicked off, markets will continue to pay close attention to headlines regarding the spreading of the corona virus. Later this week Chinese PMI figures (Friday) will be closely watched for any potential negative impact already showing up in service sector activity."

"We start the week in a quiet manner on the data front with the German IFO index for January released today. In light of a further rebound in the ZEW and PMI numbers last week, we expect IFO to chime in with the signal that the gloomy skies over Germany's manufacturing sector are brightening."

"Later this week, we look forward to the FOMC (Wednesday) and Bank of England (Thursday) meetings and European inflation figures (Friday)."