Following yesterday's moderate downturn, the US dollar now appears on track to be making positive corrections against most of its currency counterparts in today's trading. The EUR/USD, as of this morning, had already recovered 34 points to trade at the 1.3110 price level. Against the British pound, the USD experienced a similar retracement which was limited in scope and duration.

One positive element to emerge from yesterday's economic events from the United States was a reduction in the Federal Budget Balance, from a deficit of $150.4B to a deficit of $80.0B. Following this news, the USD began its retracement, but has so far only been able to recapture a small percentage of yesterday's market movement.

Today's news is expected to be significantly more impactful. The euro zone and Britain will each be releasing their decisions on short-term interest rates, which always tend to increase market volatility. Additionally, the US will be publishing its trade balance figures, which are expected to reveal a deepening of America's trade deficit, signaling a reduction in exports from a gradually strengthening currency.

If the trade deficit has indeed widened, there is a possibility the USD could see a minor downturn through today's trading. However, most of today's trading volume and volatility will more likely be generated from the news coming out of Europe and Britain.