The dollar started yesterday's trading session on a bad note, taking losses against the euro as investors put aside fears about euro-zone economies. EUR/USD reached a high of 1.2303, before falling back later in the day. The ADP Non-Farm Payrolls Report, which was forecasted to show an addition of 59K U.S. jobs, came in well below expectations. Subsequently, investor fears regarding the pace of the global economic recovery kept downward pressure on oft-traded EUR/USD pair. Better news later in the day, which showed that American business activity grew for the ninth month straight, kept EUR/USD up but unable to break the 1.2300 level.

EUR/USD is currently trading at 1.2207$. Against the CAD, the greenback soared some 88 pips higher in response to a decline in crude oil prices. With regards to the yen, the USD traded relatively flat and seemed to have reached a turning point as sell pressure declined after the approached the 88.00 level.

Looking ahead to today, traders are advised to pay attention to a number of reports set to be published throughout the day. The ISM Manufacturing PMI and the U.S. Pending Home Sales report are both forecasted to show a decline in the overall state of the U.S. economy. Should the predictions come true, traders can expect EUR/USD to drop further.