The Dollar's rally vs. the majors continued on last week trading session. The Dollar reached a 10-month high against the Euro last week as the EUR/USD pair dropped to the 1.3266 level. The Dollar continued to strengthen against the Pound and Yen as well.
The Dollar rises as the U.S. economy provides more and more positive data. The Existing Home Sales report, which measures the number of residential buildings that were sold during February, rose by 5.02M. This has been the 8th month in a row that over 5 million buildings were sold. In addition, the Core Durable Goods Orders showed that the total value of new purchase orders placed with manufacturers for durable goods rose by 0.9%, beating expectations for a 0.6% rise. Yet the most significant data from last week was the weekly Unemployment Claims. The report showed that merely 442,000 individuals have filed for unemployment insurance for the first time during the past week. This has been the best result in 6 weeks, and one of the lowest amount of weekly jobless claims since the recession began.
As for the week ahead, the main news event of next week is the U.S. Non-Farm Payrolls on Friday. This report provides a very up to date data regarding the employment condition, and tends to have an immense impact on the market. Traders are also advised to follow the ADP forecast which is scheduled for Wednesday. Investors usually rely on the authenticity of this forecast, and thus this release often has a large impact on the market as well.