The Dollar Saw mixed trading during last week's session. The Dollar began last week with a sharp drop against the Euro, and since then managed to erase all losses. The Dollar also rose against the Pound. On the other hand the Dollar saw a bearish trend against the Yen.
The Dollar began last week with a deep fall against the Euro. The main reason for the fall was the Greek rescue plan. After several weeks of speculations, the EU countries have finally gathered a bailout plan for the Greek debt crisis. As a result the Euro rose against all the major currencies. However as the week progressed, the Dollar began to erase the losses, mainly due to positive U.S. economic data. The U.S. Retails Sales rose by 1.6% in March, beating expectations for a 1.1% rise. This showed that the U.S. consumers have confidence in their financial outlook and that they feel safer to consume. In addition, the U.S. Building Permits report showed that the number of new residential building permits that were issued on March rose by 0.69M, also beating expectations for a 0.63M result. Considering that the U.S. housing sector was the catalyst for the recent recession, inventors follow carefully after every release on this subject. As a result, every positive data from the U.S. housing sector tends to instantly boost the Dollar.
Looking ahead to this week, many interesting economic publications are expected from the U.S. The leading publications look to be the Producer Price Index, the Unemployment Claims, the Existing Home Sales, the Durable Goods Orders reports and the New Home Sales. Analysts currently forecast rather positive results for these publications. If the end result will indeed turn to be positive, the Dollar is likely to strengthen as a result.