Last week the Dollar saw a volatile trading session against all of the major currencies. The greenback started last week with rising trends against the Euro and Pound, yet eventually returned to similar rates from the beginning of the week.
Last week's early rally of the Dollar was mainly due to the positive Consumer Confidence survey on Tuesday. The survey showed that consumers in the U.S currently have a positive view regarding economic conditions such as labor availability, business conditions, and the overall economic situation.
Even though the survey failed to reach expectations for a 57.0 result, the mark above 50.0 boosted the Dollar. In addition, the Pending Home Sales rose for the 7th consecutive month, indicating that the housing sector in the U.S is showing recovery signals. On the long-term, a sequence of positive housing data is likely to support the Dollar, as many see it as the number one parameter in the economy's condition.
However, the poor employment figures have halted and reversed the Dollar's rising trend. The Non-Farm Employment Change report showed that the U.S economy lost 263,000 jobs in September, which was more than had been expected. This had investors questioning the economy's recovery and pushed them away from the Dollar.
Looking ahead to this week, many impacting publication are expected from the U.S economy. The Non-Manufacturing Purchasing Managers' Index (PMI), the weekly Unemployment Claims and the U.S Trade Balance are all likely to influence the market the most. Traders are advised to pay special attention to the employment figures since last week's data has apparently made this one of the most urgent matters at the moment.