The US Dollar surged versus the majority of its currency counterparts during yesterday's trading. Against the EUR, the greenback reached towards 1.3640 up from yesterday opening price of 1.3775. A significant price shift in the market yesterday was also the sudden surge in the value of the Canadian Dollar (CAD) against the buck. The USD/CAD began to reach towards parity with a current price of 1.0185.

Two important economic indicators came in at levels unforeseen by economists yesterday. The TIC Long-Term Purchases report, which is a measure of investment in the local US market, was published significantly lower than was expected. Additionally, the NAHB Housing Market Index dropped this past month, highlighting weakness in the American housing sector.

Most investors would normally expect a sudden sell-off in USD, but the opposite in fact took place. The Dollar and Yen each shot up following the above reports due to a dramatic rise in risk aversion. US stocks plummeted following the news but the greenback has gained from risk flight.

These price movements also seem to have come at the start of a volatile trading week. Today's release of the US Building Permits report could help verify whether yesterday's NAHB report was accurate and give more direction for the strength of the local economy in the US. The Federal Reserve Board will also be publishing its decision on US short-term interest rates. The latest string of data from the United States suggests that a rate hike would be premature at this point, so investors shouldn't expect much change from this event, but volatility, as always, should be anticipated.