The U.S. dollar has ended the week lower against all higher yielding currencies as the actions by Washington and leaders of the 20 largest economies have helped to restore risk appetite. USD/JPY which tracks the market’s sentiment broke 100, to trade at the highest level since November. The fate of the dollar in the week ahead will be largely dependent upon whether we are at a turning point in the global recession or if investors have been misled by false expectations.

Job losses in the month of February are predicted to be very bad, but the latest service sector ISM data suggests otherwise. Activity in the service sector continued to contract with the non-manufacturing ISM report falling from 42.9 to 41.6.