The US dollar showed mixed performance early on Tuesday as investors awaited CPI

Early on Tuesday, the US dollar displayed a mixed performance against major currencies: it strengthened against the pound and yen but weakened against the euro and Canadian dollar.

Investors are gearing up for the release of the February consumer price index (CPI) report, especially after last month's surprise, which shifted expectations regarding the timing of the Federal Reserve's potential rate cuts.

Expectations for the overall CPI indicate a 0.4% increase compared to the previous month's 0.3% gain, while core CPI (excluding food and energy prices) is expected to rise by 0.3% following a 0.4% increase in January. Year-over-year rates are projected to hold steady at 3.1% for overall CPI and decrease slightly to 3.7% for core CPI.

Following the CPI release, weekly Redbook retail sales data is set to be published at 8:55 am ET, followed by the US Treasury's monthly budget statement at 2:00 pm ET.

Earlier in the day, the National Federation of Independent Business reported a further decline in small business confidence in February, primarily due to concerns about inflation and high interest rates.
Fed officials are currently in a 'quiet period' until after the March 19-20 Federal Open Market Committee meeting.