Following another day of choppy action in financial markets, volatility is set to rise on key data releases and macroeconomic events on Wednesday. The UK will publish the Spring budget and Eurostat will release January Retail Sales data for January. Later in the session, ADP Employment Change for February and January JOLTS Job Openings will be featured in the US economic docket. The Bank of Canada (BoC) will announce monetary policy decisions, and Federal Reserve Chairman Jerome Powell will testify before the House Financial Services Committee.

The US Dollar (USD) Index declined toward 103.50 as the benchmark 10-year US Treasury bond yield broke below 4.2% in the early American session on Tuesday. The negative shift seen in risk mood, as reflected by the bearish action in Wall Street, however, helped the USD benefit from safe-haven flows and find a foothold. Early Wednesday, the USD Index fluctuates slightly below 104.00 and the 10-year yield holds steady at around 4.15%. Meanwhile, US stock index futures trade mixed