The Dollar continued to strengthen during last week's trading session. The Dollar soared against the Euro, and the EUR/USD pair has reached the 1.3502 level. The Dollar saw a rising trend against the Pound as well.
The bullish trend of the Dollar came in a week on which several economic indicators proved that the U.S. economy is stabilizing. The Building Permits report showed that 0.61M new residential building permits were issued during the month of February. This has been the third month in a raw that at least 0.60M permits were issued. In addition, the Core Consumer Price Index (CPI), the leading inflation gauge rose by 0.1% during February. The latest CPI results showed that there are no worries of either inflation or deflation, which is a very reassuring notification for a recovering economy. The unemployment condition also seems to be stabilizing as the weekly Unemployment Claims decreased by 5,000 to 457,000 during last week. At the current timeline, when global economies still struggle to pull out of recession, investors understand that it is often better to see solid data from the economy. This shows that the economy is truly recovering and is likely to continue to provide recovery indications.
As for the week ahead, many interesting news events are expected from the U.S. economy. Traders are advised to pay special attention to the Existing Home Sales, the Durable Goods Orders index, the New Home Sales and the weekly Unemployment Claims. Traders should also follow Fed Chairman Ben Bernanke's speech which is expected on Thursday as he is expected to discuss potential interest rate changes.