The U.S. dollar was able to brush off much worse than expected housing data to remain within respectable trading distance against major counterparts ahead of the holiday weekend.

Another record intraday high in US stocks today means another day of solid gains for carry trades.

When the foreign exchange markets have nothing to worry about, carry traders have no reason to abandon their positions. This explains why the US dollar took another aim at its 5-week high, shrugging off weak manufacturing data and stronger Eurozone data in the process.

Housing data has made everyone very worried about the outlook for the US economy, but that pessimism has been tempered by the fact that the labor market is holding steady.

It has been a tough day for the US dollar with softer inflation, housing and capital flow data triggering a wave of dollar selling.

Speculators trading the US dollar will need to focus on two things this week: inflation and housing.

When talking about US dollar strength or weakness, traders these days need to distinguish between whether they are talking about the dollar’s value against the euro, British pound, or Japanese yen.

The US dollar is up strongly today against the euro and British pound in a classic buy the rumor, sell the news type of price action.

The Federal Reserve's interest rate meeting scheduled for Wednesday is one of the financial market's biggest event risks this week.

The US dollar is visibly weaker today, but trading has remained exceptionally quiet with the EUR/USD trapped within a 35 pip trading range for the past 24 hours.