The US dollar is struggling against its Canadian counterpart on Tuesday, joining the tepid decline in the broader financial markets. Investors are bracing for next week’s much-anticipated inflation report, while also monitoring the Federal Reserve. For now, it is about the data and the equities arena.

According to the Bureau of Economic Analysis (BEA), the trade deficit remained unchanged from January, coming in at $89.2 billion in February. This was also slightly higher than the market forecast of $88.5 billion.

Exports edged up to $228.6 billion, while imports jumped to $317.8 billion.

Meanwhile, in other economic data, the Logistics Managers’ Index advanced to an all-time high of 76.2 in March, driven by soaring inventory, warehousing, and aggregate logistics costs.

This, the study authors note, is adding cost pressures to a wide variety of sectors and services, adding to the global supply chain crisis.

There has been quite the discussion as of late that the US economy will slip into a recession over the next year or two. One former Federal Reserve official thinks the United States will start a recession this summer amid soaring inflation.

“I do think we’re going to have a recession, probably in the next quarter,” former Federal Reserve Governor Lawrence Lindsey told CNBC. “Inflation is eating into consumer spending power, they’re going to have to cut back.”

The US Treasury market was mostly in the green on Tuesday, with the benchmark 10-year yield up 0.062% to 2.474%. The one-year bill added 0.023% to 1.722%, while the 30-year bond climbed 0.065% to 2.539%.

The US Dollar Index (DXY), which gauges the greenback against a basket of currencies, fell 0.08% to 98.92, from an opening of 99.00. The index seesawed throughout overnight trading. But it is still up about 3% year-to-date.

The USD/CAD currency pair tumbled 0.37% to 1.2444, from an opening of 1.2490, at 12:30 GMT on Tuesday. The EUR/USD dropped 0.11% to 1.0963, from an opening of 1.0974.