The interest rate outlook is the primary concern this week as the European Central Bank (ECB) is set to reconsider its monetary policy approach on Thursday.

Fundamental conditions have not deteriorated markedly for the dollar over the past few weeks, but sentiment surrounding the currency certainly has.

For the past six weeks, the euro has been more or less unstoppable in its rally.

Should you short the US dollar or wait?

For the past two years, ECB policy meetings were altogether overlooked by market participants.

Euro-region fundamentals deteriorated significantly this past week, and yet the euro has given up relatively little ground against its primary counterparts

The US dollar did not end this past week in a good position. In fact, the trade-weighted dollar index actually broke a blatant three-year rising trendline.

Scheduled event risk thins out over the coming week for the global docket, but that won't sooth the euro.

Nothing seems to be going the dollar’s way. The deficit continues to balloon, evidence of a robust economic recovery is taking too long to materialize, the global interest rate outlook is quickly outpacing the Fed and risk appetite trends remain stubbornly buoyant.

Supporting interest rate expectations is particularly important for the euro’s performance.