US Inflation Data Due: Signs of Cooling Could Inch Fed Toward Rate Cut

• US Consumer Price Index (CPI) for February expected to show inflation remaining elevated at 3.1% annually and 0.4% monthly.

• Core CPI forecast to edge down slightly to 3.7% annually but still historically high.

• Data could provide clues on timing of anticipated Fed pivot to lowering interest rates.

• Stronger-than-expected inflation could lead to short-term US dollar rebound on inflation concerns.

• Sustained downtrend in dollar will likely require clear evidence of slowing inflation nearing Fed's 2% target.