The US dollar weakened across the board today despite a stronger than expected non-manufacturing ISM report.

Throughout this past week, there have been a number of upside surprises in the US releases including Friday's non-farm payrolls report, first quarter GDP, Chicago PMI, and manufacturing ISM.

The US dollar has strengthened across the board today ahead of Friday's non-farm payrolls release. This may befuddle some traders as the greenback's price action conflicts with the higher jobless claims report and the deterioration in the employment component of manufacturing ISM.

The Federal Reserve cut interest rates by 25 basis points to 2 percent, which was right in line with the market’s expectations. However, the US dollar sold off because the market was disappointed that the central bank did not give them more.

Fed officials face a tough decision when they weigh the risk of deteriorating growth with that of rising inflation.

Kathy Lien has three reasons why we could be at a temporary bottom for the US dollar and the beginning of further losses for the euro.

There was little to alter the greenback's slow but steady rise through the week's end Friday. The only economic indicator to cross the wires was the final reading of the University of Michigan's consumer confidence survey.

The headline reading of the Commerce Department's durable goods orders report contracted for the third consecutive month during March, due largely to declines in demand for transportation and defense goods.

After hitting a record low against the euro on Tuesday, there has been little follow through selling in the US dollar, leaving many traders wondering whether this may be a pause before further losses or a potential bottom.

It has been a record breaking day in the financial markets with the US dollar falling to a new all-time low and oil prices hitting a record high above $119 a barrel.