The US dollar turned bearish late last night, as rumors began circulating that the euro-zone may raise key interest rates in the near future. The anticipated move caused investors to flock to riskier assets like the euro and sterling, largely at the expense of the greenback. The EUR/USD was once again able to move above the psychologically significant 1.3700 level, after having fallen as low as 1.3570 during yesterday's session. Currently the pair stands at 1.3716. The GBP/USD shot up close to 60 pips in the overnight session before staging a slight correction. Currently the pair stands at 1.6045.

Today, dollar traders will want to pay close attention to this month's US ISM Manufacturing PMI, scheduled to be released at 15:00 GMT. The manufacturing industry has proven to be a significant indicator of American economic health. For today's figure, analysts are predicting a result of around 57.8, which if true would signal industry expansion, albeit less than in December. Assuming the PMI comes in as predicted, the dollar may see some short term gains in the afternoon session.

In addition, traders do not want to forget that this is Non-Farm payrolls week. Wednesday's ADP Non-Farm Employment Change and Friday's Non-Farm Payrolls figure are going to inject a substantial amount of volatility into the marketplace. Do not miss this unique opportunity for large profits following the news.