Dollar pared its gains on profit taking in New York mid-day despite rising yields

Despite rising across the board on Tuesday due to a rebound in U.S. Treasury yields together with month-end buying in usd, the greenback later pared its gains in New York mid-day and ended the day marginally higher against majority of its peers.  
  
Reuters reported U.S. consumer confidence eased slightly in May as concerns about high inflation persisted and perceptions of the labor market softened a bit, a survey showed on Tuesday. The Conference Board said on Tuesday its consumer confidence index slipped to a reading of 106.4 this month. Data for April was revised higher to show the index at 108.6 instead of the previous reported reading of 107.3. "The decline in the Present Situation Index was driven solely by a perceived softening in labor market conditions," said Lynn Franco, senior director of economic indicators at The Conference Board in Washington. "By contrast, views of current business conditions, which tend to move ahead of trends in jobs, improved."  
  
Versus the Japanese yen, despite bouncing to 128.3 in Asian morning, price retreated sharply to 127.64 in early European morning. The pair then found renewed buying there and rallied to an 11-day high at 128.88 in New York morning due partly to cross-selling in jpy before stabilising.  
  
The single currency dropped to 1.0735 in Asian morning before trading sideways. The pair then tumbled to an intra-day low at 1.0680 at New York open due partly to month-end buying in usd together with cross-selling of euro especially vs sterling before rebounding strongly to 1.0746 on retreat in usd.  
  
The British pound also fell in tandem with euro to 1.2591 at European open and then ratcheted lower to session lows at 1.2561 at New York open on usd's broad-based rebound. Cable then pared its losses and staged a strong short-covering rebound to 1.2630.  
  
Data to be released on Wednesday:  

Australia AIG manufacturing index, manufacturing PMI, GDP, U.K. BRC shop price index, S&P Global manufacturing PMI, Japan business capex, Jibun bank manufacturing PMI, China Caixin manufacturing PMI, Germany retail sales, S&P Global manufacturing PMI, France budget balance, S&P Global manufacturing PMI, Swiss manufacturing PMI, Italy S&P Global manufacturing PMI, unemployment rate, EU S&P Global manufacturing PMI, unemployment rate, U.S. mortgage application, ADP employment change, redbook, S&P Global manufacturing PMI, construction spending, ISM manufacturing PMI, JOLTS job openings, Canada BOC rate decision and S&P Global manufacturing PMI.