The macro highlight of the week will be Thursday's release of US January CPI while investors assess the geopolitical risk – largely Ukraine-related. Any progress on the diplomatic front should lift the S&P 500 Index to the 4590/4600 area, economists at ING report.

Dollar downside should be limited ahead of Thursday's CPI

“US 10-year Treasury yields are now at 1.90% and could edge higher still, especially with a lot of US Treasury issuance due this week. Equally one would expect US rates markets to stay cautious ahead of what should be a new cycle high in US CPI on Thursday.”

“Any progress on the diplomatic front to ease tensions surrounding Ukraine would be very welcome and likely take the S&P 500 back through important resistance at the 4590/4600 area – a key benchmark for the risk environment.”

“For today expect narrow ranges in the DXY – but support at 95.00/95.25 seems a little stronger after Friday's NFP release.”