Analysts at UOB Group explained that all eyes will be on inflation data in the UK, especially given the potential impact on monetary policy.
"At last week’s March BoE meeting, there was an 8-1 vote to leave interest rates on hold at 0.25% whilst Forbes voted for an immediate hike in rates due to inflation concerns.
Some other members also commented that only limited evidence of stronger growth or inflation could make it appropriate to increase interest rates earlier than expected."
"This month’s data will, therefore, be important and a stronger than expected rate would increase speculation that the BoE could edge towards higher interest rates, especially with a gradual shift in global policies towards a tighter stance.
PPI data will also be watched closely given that it will be an important indicator of underlying inflationary pressures and likely CPI trends over the next few months. The other key data this week would be retail sales data will also be released this week."