The ISM index of manufacturing activity edged down from 52.3 in February to 50.9 last month, which suggests that activity in the nation's factory sector continues to expand, albeit at a very sluggish pace. However, the outturn was close enough to the consensus forecast that the data had little net effect on financial markets. In currency markets, the U.S. dollar, which struggled last week, has clawed its way back a bit versus many major currencies in quiet trading. Indeed, the greenback has risen to a four-week high against the Japanese yen this morning. Perhaps the recent stability in financial markets is leading speculators to become a bit less risk averse, which would imply a re-engagement of yen carry trades.

There is not much on the docket today other than data on pending home sales in February. The Reserve Bank of Australia will announce its monthly policy decision tonight, and the Aussie dollar could get hit if the RBA does not hike rates. Speaking of monetary policy, the Bank of England holds a policy meeting on Thursday, and the ISM non-manufacturing index is also scheduled for release on Thursday. The week rounds out on Friday with the U.S. employment report for March.