The US dollar moved up against virtually all of its main currency rivals yesterday, following the release of a positive US Building Permits figure. Immediately after its release the GBP/USD began to tumble and has yet to stop. Currently the pair is trading at 1.5924, down from 1.6035 yesterday afternoon. Meanwhile, the USD/JPY pair started moving up yesterday evening. The pair is currently up over 30 pips and appears likely to extend its bullish rally.

Today, a batch of US news is scheduled to be released and will likely cause heavy dollar volatility in afternoon and evening trading. At 13:30 GMT, traders will want to pay attention to the weekly Unemployment Claims figure, while at 15:00 the Existing Home Sales figure is set to impact the market.

Employment and housing statistics have proven to be reliable indicators of overall economic health in the US. Today's indicators are both forecasted to come in better than their respective previous reports. If true, the dollar may see a boost in afternoon trading. That being said, the Unemployment Claims figure has proven to be notoriously hard to predict. The last two weeks have seen a higher number than forecasted, which has caused the dollar to drop. Should today's figure come in above 422K, the greenback could erase yesterday's gains.