The US dollar rose in European trade on Tuesday against a basket of major rivals, resuming the gains and approaching three-month highs as US 10-year treasury yields rallied.

It comes ahead of decisive US data later today, which would provide evidence on upcoming Fed interest rate cuts this year.

The Index

The dollar index rose 0.1% to 104.37, with a session-low at 104.21.

The index lost 0.1% yesterday on profit-taking, away from three-month highs at 104.57.

US Yields

US 10-year treasury yields rose 0.65% on Tuesday on track for the third profit in a row, hitting a 3-⅕ month high at 4.312%.

US Rates

According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut stood at 97% in November.

Now investors await a batch of important US data later today that would provide important signals on the future of the US economy.

US housing prices are expected up 4.9% in August, slowing down from 5.9% in July.

The CB consumer confidence index is expected up to 99.5 in October from 98.7 in September.

The JOLTS job opportunities survey is expected to show 7.98 million new vacancies in September, down from 8.04 million in August.