07:44 AM EDT, 03/19/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Tuesday ahead of the release of home building data for February at 8:30 am ET and weekly Redbook same-store sales at 8:55 am ET.

The Atlanta Federal Reserve's gross domestic product Nowcast estimate for Q1 is expected to be released around midday, with the US Treasury's monthly TICS data due to be released at 4:00 pm ET.

The CME FedWatch Tool still shows markets are pricing in a 99% chance of no change from the current 5.25% to 5.50% range for the Federal Funds target rate band at the conclusion of the two-day Federal Open Market Committee meeting Wednesday, and a 1% chance of a 25 basis point reduction to a range of 5% to 5.25%.

A quick summary of foreign exchange activity heading into Tuesday:

EUR-USD fell to 1.0846 from 1.0872 at the Monday US close and 1.0902 at the same time Monday morning. The Eurozone ZEW economic sentiment index improved in March, data released earlier Tuesday showed. European Central Bank Vice President Luis de Guindos said overnight that the ECB could consider rate cuts as soon as its June 6 meeting, according to Reuters. The next ECB meeting is scheduled for April 11.

GBP-USD fell to 1.2688 from 1.2729 at the Monday US close and 1.2738 at the same time Monday morning. There are no UK data on Tuesday's schedule. The next Bank of England meeting is scheduled for Thursday when no change in interest rates is expected.

USD-JPY jumped to 150.4418 from 149.1617 at the Monday US close and 149.0749 at the same time Monday morning. The Bank of Japan lifted the range for its target rate overnight to 0.0% to 0.1% from a range of minus 0.1% to 0.0%, the first rate increase since 2007, and said it will discontinue its yield curve control policy for 10-year Japanese government bonds. The next BoJ meeting is scheduled for April 25-26. Also released overnight, Japanese industrial production and capacity utilization declined sharply in January.

USD-CAD rose to 1.3568 from 1.3534 at the Monday US close and 1.3543 at same time Monday morning. Canada consumer price data for February is scheduled to be released at 8:30 am ET. The next Bank of Canada monetary policy meeting is set for April 10.