The Dollar soared yesterday on lower U.S. Consumer Confidence figures of 53.1, rather than the forecasted 57.0. The Dollar rose to a near 2-and-a-half-week high vs. the EUR to 1.4526 at its highest point yesterday. It should be pointed out that the data from the U.S. seemed to lead to a decrease in demand for riskier assets that are funded by borrowing the U.S. Dollar.
The EUR/USD cross fell by nearly 70 pips on Tuesday to finish trading at the 1.4592 level. The EUR fell, despite positive economic news from the Euro-Zone. The Dollar fell for the second day against the GBP, as the pair finished trading at 1.5969. The USD went volatile vs. the Pound, due to the British currency rising as the Bank of England (BoE) announced that it had no plans for lowering bank reserve rates. With regards to the JPY, the USD to make some inroads as the cross closed at 90.15. This may be partially owed to Japan's government wanting to abandon a strong Yen.
Looking ahead to today's trading, there is plenty of economic news that is expected to be published from the U.S. economy. The most important of these is expected to be the ADP Non-Farm Employment Change at 12:15 GMT. Also, amongst the other important data releases from the U.S. are the Final GDP figures at 12:30 GMT and the Chicago PMI at 13:45 GMT. As you forex traders can see, there is no break expected from trading today. In addition, due to the high volatility expected, it is encouraged that you buy-up large USD positions now, as today's trading takes off.