The U.S. Dollar fell against most major currencies in overnight trading as investor appetite for risk increased while tensions over Irish debt issues eased. Pressure increased on the Dollar amid optimism that a bailout for Ireland will prevent contagion across the Euro region’s debt markets.

The U.S. Dollar took a hit this morning following the release of the worse than expected June Non-Farm Payrolls Report. Going into the report, investors were looking for total jobless claims to fall 130,000. The actual number was -125,000.

The Euro tumbled to a new low for the year after Spain’s debt was downgraded to AA. Traders initially sold off the Euro in a knee-jerk reaction, but selling pressure quickly dried up. Although the Euro reached a new low for the year, the selling pressure was not as intense as Tuesday’s reaction. This was because investors had already discounted the possibility of the downgrade.

The Dollar is trading higher overnight as traders await key economic reports and tomorrow’s Federal Reserve Open Market Committee meeting. Overnight, traders are reacting to less demand for risk on concerns over a Greek bailout and a debt cut for the U.K.

Key reports today include Empire State Manufacturing, Treasury International Capital and Industrial Production.