The US dollar rose in European trade on Tuesday against a basket of major rivals, resuming gains and approaching six-week highs once again as US 10-year treasury yields rebounded.

The gains come ahead of important US retail sales data, which will showcase the status of the US economy in the second quarter.

The Index

The dollar index rose 0.2% today to 105.54, with a session-low at 105.26.

The index closed down 0.2% on Monday, the first loss in three days on profit-taking, away from six-week highs at 105.81.

US Yields

US 10-year treasury yields rose 0.3% on Tuesday away from recent 10-week lows at 4.190%, underpinning the greenback.

Fed Minneapolis Chair Neil Kashkari said the expected move would be a single interest rate cut by the Federal Reserve this year, likely in December.

Philadelphia Fed President Patrick Harker also said the Fed will be able to cut interest rates one time this year if the economic outlook was achieved.

US Rates

According to the Fedwatch tool, the odds of a September Fed interest rate cut fell to 60%, and the odds of such a cut in November fell to 74% from 80%.

Investors now expect a single Federal Reserve interest rate cut this year.

US Retail Sales

Now investors await crucial US retail sales data for May, crucial as they represent nearly 70% of total GDP.