The Dollar dropped against most of the major currencies during last week's trading session. The Dollar actually began last week's trading with a bullish trend, continuing the general trend of the American currency, however as the week progressed, the Dollar erased all gains against the majors.
The Dollar's bullish run which took place at the beginning of last week came mostly as the result of the positive data that was published from the U.S. economy. The U.S. housing sector continued to provide growth signals as the Pending Home Sales report delivered better-than-expected figures. The report showed that the pending sales of existing homes rose by 8.2% during February, beating expectations for a 0.5% drop. Considering that the housing sector was the trigger for the recent economic crisis, every positive data on this matter tends to boost the Dollar. However later in the week, the Dollar saw a sharp downtrend against the major currencies. This was due to two reasons. The first one was a disappointing employment data which showed that 460,000 individuals have filed for unemployment insurance for the first time during the past week. The second was the European governments' rescue package which was offered to the Greece economy. This has promptly boosted the Euro, and as a result weakened the Dollar.
As for the week ahead, there are many of interesting economic publication expected from the U.S. Traders are advised to pay special attention to the Trade Balance, the Consumer Price Index, the Retails Sales reports and the weekly Unemployment Claims. Traders are also advised to follow any development regarding the Greek aid plan, as this issue is likely to further dominate market movements for this week.