The Dollar rallied versus most of the major currency pairs during last week's trading session. The Dollar marked a 14-month high against the Euro, as the EUR/USD pair dropped close to the 1.2500 level. The Dollar also saw a 600 pips gain vs. the Pound.
The Dollar rallied last week as a result of a series of positive data from the U.S. economy. The Manufacturing Purchasing Managers' Index showed that the manufacturing in the U.S. expanded at a faster pace than expected. In addition, the housing data showed that the Pending Home Sales have increased by 5.3% in March, beating expectations for a 3.9% rise.
Yet the most significant economic release was published on Friday. The Non-Farm Employment Change report showed that the payrolls in the U.S. rose by 290,000 in May. This was the sharpest rise in the labor market in the last 4 years. The positive data has further reassured that the U.S. economy is reversing rapidly, and has boosted the Dollar.
Looking ahead to this week, many interesting economic publications are expected from the U.S. The most significant publications look to be the Trade Balance on Wednesday, the weekly Unemployment Claims on Thursday, and the Retail Sales and the Consumer Sentiment reports on Friday. If this data will continue to prove that the U.S. economy is expanding at such a fast pace, the Dollar is likely to continue its bullish trend.