The Dollar slid against its major currency counterparts following a rally in global equity markets. The rally prompted investors to turn to higher yielding riskier assets and away from the USD. With recent market optimism, traders may continue to see a small downward trend in the U.S. Dollar as its positions are unwound in exchange for higher yielding assets.

The dollar dropped to a 15-month low against most of its major currency pairs yesterday, as generally upbeat U.S. economic data and gains in world stocks eroded the greenback’s safe-haven appeal. By yesterday’s close, the dollar fell 1.4% against the JPY to 87.35, it’s lowest since January. The dollar experienced similar behavior against the EUR and closed at around1.5130. U.S. data pointed to stabilization in the labor, consumer and housing sectors of the economy, boosting risk appetite and driving higher-yielding currencies such as the Australian dollar higher. Also weighing on the dollar were minutes from the Federal Reserve’s last policy meeting released on Tuesday, which described the greenback’s recent decline as “orderly” and affirmed expectations U.S. interest rates will remain low well into 2010. Today is the Thanksgiving holiday in U.S. and there are no major economic data releases on the calendar today. However, Europe and Japan appear to be releasing the bulk of today’s news, which means we may see a day of trading with low liquidity and therefore increased volatility. Day-traders can take advantage of these intense trading days by swinging within the larger-than-normal price fluctuations.