US inflation expectations retreat from record top ahead of CPI

US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, stepped back to 2.84% by the end of Wednesday’s North American trading session.

In doing so, the inflation gauge stepped back after refreshing the all-time high with a 2.90% figure the previous day.

Despite the latest pullback, the inflation expectations do suggest an upside risk to today’s US Consumer Price Index (CPI) data for February, which in turn could propel the US Federal Reserve (Fed) to rethink over 0.50% rate hike in March.

Read: US February CPI Preview: Will hot inflation force Fed’s hand?

In addition to the US inflation data, the peace talks between Russia and Ukraine in Turkey are also important to follow for fresh impulse.

Read: AUD/USD hovers above 0.7300 amid anxiety over Ukraine-Russia peace talks