There have been solid gains in the US dollar against the euro, British pound, and Canadian dollar.  Will these moves continue?

The potential for a major greenback move are doubled with a number of first tier indicators anchored by the market’s top billed Non-Farm Payrolls release.

The U.S. dollar was relatively strong on Friday during a very volatile session where most traders decided to take profits ahead of the Labor Day holiday.

Orders for durable goods produced in the United States unexpectedly gained 1.3 percent, the Commerce Department said Wednesday in Washington. To some extent, the gain in orders reflected growing demand from abroad because of a relatively cheap U.S. dollar.

The U.S. dollar climbed to a six month high against the euro on speculation the European Central Bank could have to cut interest rates to prevent the euro zone economy from falling into a deep recession.

The greenback was particularly strong against commodity currencies, like the New Zealand dollar, but continued to lose ground against low yielding currencies like the Japanese yen.

With the US dollar rising to new multi-month highs against all of its liquid counterparts, skeptical bears will start to point out the fading interest rate outlook for the Fed as a good reason to reevaluate any long-term dollar rallies.

The US dollar staged a solid recovery on Friday, as the dollar index bounced from key trendline support that formerly served as resistance from late 2005–2007.

The US dollar pulled back across the majors, as the overbought currency finally shows signs of correction.

The US dollar was generally stronger across the majors on Wednesday, though economic data had little to do with the gains and the currency continues to simply consolidate.