Following yesterday's testimony by Fed Chairman Bernanke, the Dollar tumbled against several of its main currency rivals, most notably the Euro and British Pound. In the testimony, Bernanke explicitly stated that U.S. interest rates would remain at their record lows for quite some time.
Investors responded to Bernanke's statement by abandoning the safe-haven Dollar in favor of riskier currency pairs including Sterling, the Euro and the Australian Dollar. The Aussie in particular has seen a steady increase in value as of late against the greenback.
Despite the Dollar's recent losses, analysts are predicting solid gains for the greenback today. Forecasts for both the U.S. Unemployment Claims Report, as well as the TIC Long-Term Purchase figure, are somewhat optimistic. Providing these forecasts are indeed true, the Dollar should be able to correct the downward trend experienced yesterday. That being said, traders will want to watch out for any surprise results from either of these reports. Any figure that comes in below expectations may end up hurting USD in afternoon trading.