A less than encouraging Unemployment Claims report released yesterday did little to assuage investor fears in the pace of the U.S. economic recovery. Following the report's release, the dollar not only hit a 3-month low against the euro, but also recorded further losses against both the yen and Swiss franc. EUR/USD has since experienced a slight correction, but still remains dangerously close to reaching new highs. Currently the pair is trading around the 1.3060 level, down from 1.3080 early last night.

USD/JPY fell fairly consistently throughout yesterday and into overnight trading. Confidence in the greenback as a safe haven currency is clearly in question, and the yen appears to be the one currency investors are turning to. USD/JPY has fallen over 80 pips in the last 24 hours, and with no positive U.S. news forecasted, the dollar's bearish trend is likely to persist.

Today, traders will want to pay close attention to the U.S. Advance GDP report, set to be released at 12:30 GMT. Analysts are forecasting a decrease in the GDP figure from last quarter, which if true, will likely cause investors to continue to sell the dollar. Should the GDP come in at or below the forecasted 2.5%, expect further dollar losses against the yen, euro and possibly British pound.