USD review

The trade-weighted dollar dipped more than 3.5 percent in April for its worst monthly performance in four years. The dollar has suffered a black eye of late as the U.S. economy's sluggish start to the year has shifted to later in the year expectations for the Fed to boost interest rates. 

Thursday's better U.S. data helped slow the dollar's bleeding as it hinted at a rebound starting to take shape. Uncertainty will remain the name of the game for the dollar until the economy accumulates more convincing signs of recovery. 

A big test awaits the dollar next week when America's monthly jobs report is due on May 8. A healthy rebound would help put the dollar back on a bullish path as it would serve as a confidence boost in the economy and increase pressure on the Fed to hike rates. 

But after disappointing last time, another poor showing for the labor market would be decidedly dollar negative as it would intensify concerns about U.S. growth and push a Fed rate hike further into the future.