The dollar rose against most of its major currency pairs yesterday, lifted by stronger-than-expected U.S. housing and industrial data, and as worries about Greece's fiscal health weighed on the EUR. By yesterday's close, the USD rose to a two-week high against the yen, pushing the oft-traded currency pair to 91.20. The dollar experienced similar behavior against the EUR and closed at 1.3600.
The dollar extended gains against the EUR and JPY after minutes from the Federal Reserve's January meeting showed policy makers saw a need to begin a program of assets sales in the near future and expect the economic recovery to continue. The optimistic tone bolstered investors' expectation that the Fed could increase interest rates sooner than previously thought.
USD trading will be interesting today as another batch of important economic data is expected to be released. Similar to yesterday, the news will start at 13:30 GMT with a series of economic indicators being released starting with PPI figures, unemployment claims and the Philly Fed Manufacturing Index. Surprisingly, almost all of these releases are expected to be higher than their previous figures meaning the USD could continue to show further bullishness today. Traders should stay close to the market today, as there is a strong chance to capitalize on the fluctuations which will likely follow these releases.