By TraderVox.com
Worse than expected fundamental indicators out of the US led to significant dollar losses to close out last week's trading session. Both the Core CPI and Prelim UoM Consumer Sentiment figures came in below analyst forecasts. The Core CPI figure in particular dampened hopes that the Federal Reserve would increase US interest rates earlier than expected.
In addition to losses against the euro, the dollar also fell vs. the Japanese yen and Swiss franc. The USD/JPY fell as low as 83.18 on Friday before staging a mild recovery to close out the week at 83.44. The USD/CHF, which peaked at 0.9254 during the morning session, tumbled 100 pips to close out the week at 0.9154.
Turning to this week, a lack of significant news events means that the dollar may not have many opportunities to reverse its current bearish trend. Still, there are several indicators that may turn out to generate market volatility.
US housing data, scheduled to be released on Wednesday and Friday, may signal further gains in the American economic recovery. In addition, Thursday's weekly Unemployment Claims figure is forecasted to show ongoing improvements in the labor sector. If true, the dollar could see gains as a result.
Article provided by TraderVox.com
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