The U.S. dollar slid against most of its major currency counterparts during last week's trading session. The dollar fell about 100 pips vs. the euro, and the EUR/USD pair crossed the 1.38 level for the first time in almost three weeks. The dollar also fell about 150 pips against the Japanese yen.
The dollar weakened last week after several economic indicators from the U.S. provided better-than-expected figures and as a result supported demand for higher-yielding assets.
Sales of U.S. previously owned homes unexpectedly rose in January to the highest level in eight months. Purchases increased to a 5.36 million annual rate, beating expectations for 5.22 million. In addition, confidence among U.S. consumers rose in February to the highest level in three years. Both indicators signal that citizens in the U.S. became more optimistic about their income and the economy.
Looking ahead to this week, many interesting releases are expected from the U.S. economy, most significantly the Non-Farm Payrolls, which is scheduled for Friday. Other significant news releases that traders are advised to follow are the Pending Home Sales, the Manufacturing Purchasing Managers' Index, the ADP forecast for the Non-Farm Payrolls and the weekly Unemployment Rate.