The Dollar slid against most of the major currencies during last week's trading session. The Dollar dropped about 400 pips against the Pound and about 200 pips against the Yen.
The Dollar dropped as data showed that the U.S. economy's recovery might be progressing slower than expected. The Existing Home Sales dipped by 2.2% in May to 5.66M from 5.79M in April, failing to reach expectations for 6.17M. The housing sector suffered from another misfortune as the New Home Sales failed to reach expectations as well. The report showed that sales of new homes plunged to a record low. Merely 300,000 new homes were sold during in May, well below the 446,000 which were sold in April, and well below the expected 424,000.
The unsatisfying data continued as the Durable Goods Orders report was published. The report showed that durable goods orders fell in May for the first time in 6 months. The report indicated a 1.1% drop. Following about 2 months in which the Dollar strengthened against most of the major currencies, such disappointing publications were enough to correct some of the Dollar's gains.
As for the week ahead, many interesting publications are expected from the U.S. economy. The economic release which is likely to have the greatest impact will be the Non-Farm Payrolls report, scheduled for Friday. The Non-Farm payrolls report is the most reliable data regarding the U.S. employment status. Analysts have forecasted that unemployment condition in the U.S. has worsened during June. If the actual result will be similar, the Dollar's drop may deepen.