Dollar rose in European trade on Tuesday against a basket of major rivals, holding its ground above two-month lows and on track for the first profit in four days.

The gains are stymied by the declining US 10-year treasury yields following weak US data, which signaled slowing GDP growth in the second quarter.

Now traders await important US labor data, which could provide fresh clues on the path ahead for US monetary policies.

The Index

The dollar index rose 0.3% to 104.33, with an April 9 low at 103.99.

The index closed down 0.55% yesterday, marking the third loss in a row.

US 10-year treasury yields fell 0.4% on Tuesday on track for the fourth loss in a row, marking three-week lows at 4.375%.

Grim Data

Recent data showed US manufacturing shrank again in May, while construction spending fell unexpectedly, indicating a slowdown in US growth.

Following the data, the odds of a September interest rate cut in September rose to 60%, and to 72% in November according to the Fedwatch tool.

Fresh Data

Later today, the JOLTS Job Opportunities survey is expected to show the availability of 8.37 million new jobs in April.