07:45 AM EDT, 06/11/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Tuesday, except for a decline versus the pound, before a light data schedule.

Earlier Tuesday, the National Federation of Independent Business reported that small business optimism improved in May to the highest level so far in 2024, but inflation and labor quality remain key concerns and business uncertainly hit its highest point since November 2020 during the pandemic.

The only remaining data for the day is weekly Redbook same-store retail sales at 8:55 am ET.

Tuesday is also the first day of the two-day Federal Open Market Committee meeting that ends with the FOMC's statement and Chairman Jerome Powell's press conference Wednesday afternoon.

The CME's FedWatch Tool currently shows a 99.4% chance of no change in the current 5.25% to 5.5% target range for the federal funds rate being priced in by markets and a 0.6% chance of a 25-basis point rate cut to a range of 5% to 5.25%.

A quick summary of foreign exchange activity heading into Tuesday:

EUR-USD fell to 1.0739 from 1.0763 at the Monday US close and was little changed from a level of 1.0737 at the same time Monday morning. There are no Eurozone data scheduled for Tuesday, but European Central Bank policy board member Frank Elderson is set to speak at 12:45 pm ET. The next European Central Bank meeting is scheduled for July 18.

GBP-USD rose to 1.2742 from 1.2730 at the Monday US close and 1.2697 at the same time Monday morning. UK employment fell in April while the unemployment rate ticked up, data released overnight showed. The next Bank of England meeting is scheduled for June 20.

USD-JPY rose to 157.1696 from 157.0216 at the Monday US close and 156.8753 at the same time Monday morning. Japanese machine tool orders rebounded in May, data released overnight showed. The next Bank of Japan meeting is scheduled for June 13-14, when no change in rates is expected. The policy statement is expected Thursday evening US time.

USD-CAD rose to 1.3781 from 1.3762 at the Monday US close and 1.3772 at the same time Monday morning. Canadian building permits data for April are scheduled to be released at 8:30 am ET. The next Bank of Canada meeting is scheduled for July 24.