The U.S. dollar fell against most of its major currency counterparts during last week's trading session. The dollar saw a 300 pip fall against the euro and a 250 pip drop against the British pound. As a result, the EUR/USD has crossed the 1.3700 level and the GBP/USD is trading near the 1.6250 level.

The dollar depreciated last week against most of the major currencies following disappointing economic releases from the U.S. The Long-Term Purchases report has shown that global demand for U.S. stocks, bonds and other financial assets fell in December. Net buying of long-term equities, notes and bonds totaled $65.9 billion during the month compared with net buying of $85.1 billion in November.

In addition, Retails Sales in the U.S. have increased less than projected in January. Purchases increased by 0.3 percent, the smallest gain since a drop in June. Sales at retailers were depressed by a drop in demand at building material stores and restaurants in the U.S.

As for the week ahead, the most impacting economic releases from the U.S. look to be the Consumer Confidence, the Existing Home Sales, the Durable Goods Orders, the New Home Sales, and the Preliminary Gross Domestic Data. Traders are advised to follow these reports as each and every one of them has potential to boost market's volatility. Traders should also note that the dollar might see fewer fluctuations today as U.S. banks will be closed in observance of President's Day.