The big news for the USD this week appears to be the continuation of its recent rally. Approaching 1.3400 against the EUR in today's early trading hours, there is potential for the Dollar to remain in this bullish slide until other fundamental news shifts attention elsewhere. Also, while not absolutely certain, there is a distinct possibility that the USD has broken its recent downtrend against the British Pound and may be on the rise there as well.

Two important events occurred this weekend which had a significant impact on the greenback: the release of important employment data and the start of a major auto show in Detroit, Michigan. On Friday, markets anticipated the announcement of employment data which carried the potential to spoil the cheery mood floating throughout the American economy last week. Not surprisingly, this employment data painted a dreary picture, but baffling some economists was the lack of impact this news carried. It was as if expecting negative news meant no news actually occurred, highlighting once again how important speculation is in the movement of the market.

The second event was the starting of an important auto show which takes place every year in Detroit and lasts for a number of days. The beginning of the North American International Auto Show (NAIAS) yesterday highlighted the transition the world of automotives is taking towards building electric cars. As some economic analysts forecasted, such news had a positive impact on countries with large automotive industries despite the actual impact these announced vehicle products created. The speculation that alternative energies are right around the corner is enough to propel markets into small rebounds. The recent slight increase to the American stock market supports this notion.

Looking ahead this week, most data coming from the U.S. will reflect the level of retail sales and consumer confidence in the American economy. After last week's less-than-impactful employment figures, however, it's difficult to assess what impact this week's data will actually have. As such, traders are advised to pay close attention to any sharp movements this week as it may signal the start of a more clear-cut trend.