The U.S. dollar fell against most of its major rivals during last week's trading session. The dollar lost about 300 pips vs. the euro and about 400 pips against the British pound. The dollar saw bearish movements against the yen as well.
The dollar's downtrend against most of the major currencies came as a result of disappointing data from the U.S. economy. The U.S. housing sector saw further negative data after the Pending Home Sales report was published. The report showed that the number of home sales set to be finalized declined by 2.6% in June, failing to reach expectations for a 0.5% rise.
The dollar's bearishness was further reinforced on Friday, after the release of the U.S. employment data. The U.S. Non-Farm Employment Change report showed that the number of employed people during July, excluding the farming industry, dropped by 125,000, failing to reach expectations for a 106,000 decline. The news emphasized the uncertainty regarding the current U.S. employment situation, and has led to questions regarding the U.S. economic recovery.
Looking ahead to this week, many interesting publications are expected from the U.S. economy. The release which is likely to have the largest impact on the market looks to be the Federal Funds Rate, which is scheduled for Tuesday. The Federal Funds Rate is in fact the U.S. interest rates for August. Traders are also advised to follow the U.S. Trade Balance, the weekly Unemployment Claims and the Consumer Price Index.