USD review

The dollar surrendered some of its overnight gains after a gauge of regional manufacturing unexpectedly contracted in April, offering proof of the strong buck's impact on the economy. 

The Empire State index printed at -1.19 in April, the first contractionary reading of the year. The index was forecast to inch up to 7 from 6.9 in March. 

Evidence of the economy struggling to turn the corner after a weather-impacted first quarter is supportive of the view the Federal Reserve might wait longer before boosting interest rates, a dollar-negative scenario.