The U.S. dollar dropped against most of its major currency rivals during last week's trading session. The greenback fell about 250 pips vs. the euro and the EUR/USD pair reached as high as the 1.4000 level, marking a 4-month high. The dollar fell about 250 pips against the British pound we well.

Last week's employment data from the U.S. provided several positive indications which have increased demand for higher-yielding assets. The U.S Unemployment Rate fell to 8.9 percent last month, the lowest since April 2009. In addition, the U.S. Non-Farm Employment Change showed that the economy added a net 192,000 jobs last month. The weekly Unemployment Claims report provided positive data as well. Applications for unemployment benefits decreased by 20,000 to 368,000 - the lowest level since May 2008.

The dollar's depreciation against the euro also took place due to expectations that the European Central Bank will hike interest rates in April. The Fed, on the other hand, isn't likely to hike rates in the near-future.

Looking ahead to this week, many significant economic releases are expected from the U.S. economy. The most noteworthy reports look to be the Trade Balance, the weekly Unemployment Claims, the Retails Sales and the Consumer Sentiment. Traders are advised to follow these reports as they are likely to have a large impact on the dollar.