The dollar traded lower against a basket of major currencies on Tuesday after the release of mixed U.S. economic data, while a rally in the euro weighed on the greenback.

The euro printed fresh five-month highs against the dollar, as investors piled into the single currency for a second straight day after centrist candidate Emmanuel Macron won the first round of the French presidential election.

EUR/USD rose by 1.08% to $1.0944, while EUR/GBP added 0.38% to 0.8526.

The bullish euro and weaker-than-expected consumer confidence data weighed on the dollar index.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.34% to 98.57 by 13:06 EDT.

The Consumer Confidence Index dropped to 120.3 in April, compared to expectations of a fall to 122.5 for the month.

In a separate report, new U.S. home sales surged to an eight-month high in March, which added to the narrative of a strengthening U.S. economy.

Meanwhile, investors look ahead to details on President Donald Trump’s tax reform plan. President Donald Trump said Friday he will unveil a tax plan on “Wednesday or shortly thereafter” that includes a “massive tax cut” for individuals and businesses.

The recent slump in the dollar came against a strong rise in expectations that the Federal Reserve was poised to increase its benchmark rate in June.

According to Investing.com’s Fed rate monitor tool, nearly 63% of traders expect the Fed to hike interest rates in June, compared to 33.7% the previous week.

Sterling recovered against the dollar, with GBP/USD up 0.31% to $1.2835.

Elsewhere, “the loonie,” USD/CAD, traded at roughly one-year highs of $1.3608, up 0.76%, after the United States imposed duties on Canadian softwood.

USD/JPY continued its recent rally to 111.00, up 1.13%, as demand for safe haven yen has eased during recent trading sessions following the first-round victory for pro-EU candidate Emmanuel Macron.

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