After showing some signs of recovery, the Dollar continued to drop during last week's session. The Dollar most significant drops were against the Yen and the Euro. The EUR/USD pair is once again trading above the 1.50 level.
The Dollar saw a downtrend despite relatively positive data published from the U.S. economy. The Existing Home Sales rose by 10.1% in October, as 6.10M residential buildings were sold during this month. Also, last week the Consumer Confidence survey rose from 47.7 in October, to 49.5 in November. This states that U.S. citizens are regaining confidence in their financial security, and thus feel safer to consume. It seems that the positive data from the U.S. economy has turned investors on to higher-yielding assets such as the Euro and the Yen. The main catalyst for this is that the global economies including the Euro-Zone and Japan are relying on their export to the U.S, and thus, if the financial condition in the U.S. will improve, it is likely to have a positive impact on these economies as well. However in the long-term, a continuous stream of positive data from the U.S economy is likely to support the Dollar.
As for the week ahead, many impacting news events are expected, yet the most significant one is likely to be the Non-Farm Payrolls, on Friday. This is one of the most exciting publications, and has the deepest affect on the market, and traders shouldn't miss out on it. Traders should also focus on the ADP forecast for this indicator on Wednesday, as it has the potential to shake the market as well.