The US dollar underwent a general correction to recent losses yesterday as signs of positive growth gave investors reason to buy into the greenback. Simultaneously, the euro zone witnessed the reemergence of debt concerns pushing traders out of European assets and into safe-havens, like the USD.
As a result, the dollar was trading higher versus its European counterparts. The EUR/USD moved from its daily high of 1.3620 to a recent price near the 1.3590 price level. The USD/JPY experienced somewhat more bullish behavior, climbing from 81.30 to 83.35 over the last ten days. The GBP/USD, likewise, saw the dollar gaining ground, pushing back towards 1.6070 after climbing as high as 1.6136 in late-European trading.
Today's American trade balance report and consumer sentiment reading from the University of Michigan (UoM) appear to be forecasting mixed results for the dollar. The trade balance may end up showing a widening of the deficit, leading to a mild correction to the USD prior to the day's close. However, the consumer sentiment reading is expected to show increased optimism which may help the USD sustain its latest bullish move.