The Dollar saw mixed results against the major currencies during last week's trading session. The Dollar dropped about 100 pips against the Euro, and the EUR/USD pair saw a weekly high at the rate of 1.3793. The Dollar saw volatile sessions against the Yen and the Pound, and the two pairs didn't see a significant trend.
The Dollar failed to rise during last week's trading as several economic indicators delivered worse than expected figures. The Federal Budget Balance reflected a 220.9B deficit in the government's spending during February, failing to reach results for 207.5B deficit. The weekly Unemployment Claims showed that 462,000 individuals have filed for unemployment insurance for the first time during the past week, failing to reach expectations for a 456,000 result. Currently it seems that even though the Dollar is generally strengthening, for as long that the economic data from the U.S. won't show a recovery - the Dollar could drop on the short-term.
As for the week ahead, the main news event that is expected looks to be the Federal Funds Rate on Tuesday. The Federal Funds Rate is in fact the U.S. interest rates announcement for the next month. Current expectations are that the Fed will leave rates at their current low levels of less than 0.25%. However, if the Fed will surprise and hike rates, this has the potential to erase the Dollar's losses from last week.