The key theme of the week is a market-driven market dynamics, with the January US CPI report set to act as the primary catalyst. Its outcome will offer critical insight into the Federal Reserve's policy trajectory and shape near-term moves in the US Dollar and global markets. Ahead of the CPI release, Tuesday's New York Fed inflation expectations survey may influence market sentiment, while Thursday's US 10-Year Treasury auction could affect bond and currency markets through liquidity dynamics.

• US New York Fed 1-Year Inflation Expectations - Tuesday

This survey captures consumers' perceptions of future inflation, which can influence spending decision and wage behaviour. As a gauge of inflation expectations, a meaningful rise could raise concerns about inflation becoming entrenched, potentially offering short-term support to the US Dollar. Otherwise, market impact is expected to be limited.

• US January CPI (YoY) - Wednesday

The January CPI release will be the most closely watched data point of the week, providing a crucial update on the disinflation trend. Markets are forecasting headline inflation at around 2.7% YoY, with core CPI expected to be near 2.6%. Any upside surprise in core inflation would likely push Treasury yields higher and lend support to the US Dollar.

• US 10-Year Treasury Note Auction - Thursday

The Treasury will auction $42 billion in 10-year notes. With government borrowing needs elevated, investors will focus on demand indicators such as the bid-to-cover ratio and participation from overseas buyers, particularly central banks. Strong demand would help keep long-term yields contained and support risk assets.

• Switzerland January CPI (MoM) - Friday

Switzerland's January inflation data will offer insight into global price trends. A flat MoM reading of 0.0% is expected, reflecting the country's low inflation environment. While the data may cause short-term moves in the Swiss franc, its broader market impact is typically modest. An unexpected increase, however, would trigger a brief reaction in CHF pairs.

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