While starting the day with bearish tendencies, the US Dollar seemingly rebounded in later trading. Spiking to as low as 1.4820 against the EUR, the USD recovered and is currently trading just above 1.4700. Similar price swings were experienced against the JPY, CHF and GBP yesterday as well.

Positive economic data, a boost in market confidence and a consequent rise in equities all took their toll on the greenback in today's early trading hours. However, the buck saw a rebound following statements from European Central Bank President Jean-Claude Trichet which was less hawkish than anticipated. Better than expected figures in the US Unemployment Claims report also added a small boost in USD appetite.

Later in the day, Federal Reserve Board Chairman Ben Bernanke spoke, responding to Trichet's comments with a verification of tightening monetary policy to help keep the Dollar strong. Trichet's remarks were not as forceful as most expected and Bernanke's comments were strong enough to counter some of the EUR's recent gains, leading the greenback to a late-session rally Thursday evening.

Looking ahead to the end of this week's trading, there are 3 important pieces of data to consider today. First is a speech being made by Trichet at a university in Venice, Italy. After yesterday's comments about forex markets, the EUR and the USD, Trichet may use this speech to reiterate some sentiments regarding the EUR's recent bullish movement. Later in the day, the US will report its trade balance figures, but more importantly, Canada will be releasing its Unemployment Rate as well as some important housing numbers. The CAD may be one of the day's leading market movers and traders need to keep an eye on it in order to make some reasonable profits.