The Dollar has largely held onto the significant gains made yesterday against the Yen that took the pair to a 3-month high. That being said, as risk taking clearly returned to the marketplace, the greenback took some losses against its European counterparts in recent trading. GBP/USD has increased well over 100 pips in the last 24 hours, and is currently trading around the 1.5195 level. EUR/USD has similarly increased about 100 pips since this time yesterday, and is currently trading around the 1.3505 level.

With investors eagerly awaiting Friday's U.S. Non-Farm Payrolls report volatility will likely remain high today, especially ahead of the weekly American Unemployment Claims report set to be released at 12:30 GMT. Analysts are predicting that today's report will show a drop in unemployment for the week. If true, the Dollar should receive a boost as a result. Additionally, the ISM Manufacturing PMI, set to be released at 14:00 GMT, is forecasted to show an increase in the quality of a number of business conditions in the U.S. This could all signal a very strong day for the USD.

Traders will also want to pay careful attention to predictions for the Non-Farm Payrolls Report on Friday. As of now, analysts are saying that the U.S. added a substantial number of jobs in March. This could lead to a prolonged bullish trend for the Dollar, especially as confidence continues to return to the American economy.