The US data calendar remains fairly light this week and the marquee event will be Fed Chair Yellen's delivery of the semi-annual Monetary Policy Report to Congress, first before the House Financial Services Committee followed by the Senate Banking Committee.

There has been a huge shift in Fed rate expectations over the last two weeks and Yellen's testimony will likely provide significant clarity on whether a Fed March hike is still in play.

"Our economists think the odds that Yellen heavily promotes a March move are slim. Even though the Chair is likely to highlight good US economic fundamentals, the "risk" that the global malaise spills over to the US is also likely to get a lot of lip service." said Societe Generale in a report