Following Monday's announcement that existing U.S. home sales in November were better then forecasted, Wall Street had an impressive trading day as confidence in the American economy began to return. This in turn led to a less then stellar day for the USD which traders abandoned in favor of riskier currencies such as the EUR. The Dollar Index went from 75.647 to 75.130, and the greenback was down against all major currencies. This further highlighted just how volatile the dollar is, as it was unable to maintain any of the gains made last week.
Looking to the days ahead, traders can expect the USD to make some dramatic moves ahead of the Thanksgiving holiday this Thursday. The Preliminary GDP report as well as the CB Consumer Confidence report, both set to be released on Tuesday at 13:30 GMT and 15:00 GMT respectively, could dictate which way the greenback moves in trading this week. If the data, as forecasted, shows a slower expansion of the U.S. economy, the dollar will likely improve slightly against its major counterparts, and its safe haven status could return.