US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, print a two-day south-run to refresh the four-month low by the end of Tuesday’s North American session. That said, the inflation gauge’s latest print is 2.48%, the lowest since February 22.

It’s worth noting, however, that the one-year consumer inflation rate expectations climbed to 8% from May's revised print of 7.5%, per the latest details from the US Conference Board (CB).

Amid these plays, the fears of inflation prevail on the table, as well as join the recession woes to weigh on the market sentiment.

The risk-off mood also takes clues from the anxiety ahead of the key central bankers’ panel discussion at the European Central Bank (ECB) Forum. Also important for the day are the quarterly releases of the US Core Personal Consumption Expenditure (PCE) for Q1 2022, expected to remain unchanged at 5.1%.

Also read: Forex Today: Inflation and recession fears continue to drive financial markets