Following the most recent return to risk taking among investors, the dollar fell against most of its main currency rivals, including the U.K. pound and euro. While an increase in the stock market is being cited as the main reason for the dollar's decline, it is also worth noting that the U.S. Trade Balance figure came in below expectations yesterday. Furthermore, strong U.K. CPI and German Economic Sentiment figures helped bring the greenback lower.

GBP/USD has shot up around 200 pips in the last 24-hours. Although a moderate correction has taken place, the pair appears to be holding around the 1.5200 level going into today's trading. EUR/USD hit a 2-month high in trading yesterday. The pair has risen around 175 pips over the last day, and is currently at the 1.2720 level.

Today, USD traders will want to watch out for several U.S. economic indicators that are likely to create market volatility. The Core Retail Sales, as well as the Retail Sales reports are set to be released at 12:30 GMT. Both are forecasted to show negative figures and could negatively impact the dollar. At the same time, should either figure unexpectedly come in above 0%, the greenback may receive a boost in afternoon trading. At 18:00 GMT, the Federal Open Market Committee is scheduled to release its latest meeting minutes. This usually provides investors with a solid indication about where the U.S. economy currently stands. USD could experience some volatility depending on the statement.