After rebounding from FOMC lows, the dollar is trending lower once more as data points overwhelmingly towards a reversal in recent strength. The combination of fundamental and technical factors warrant a deeper pullback in the dollar as the Federal Reserve sets its sights on higher rates amid a decline in the real economy. Housing data last week showed that vital components of the real economy continue to languish with spending and manufacturing pointing to a similar conclusion. The softness in the dollar could prove temporary as lacking monetary easing and interest rate forecasts see strength resume after a technical retrace. However, any further gains in the dollar would likely constrain growth further as exporters and multinationals revenues suffer from a relatively expensive currency.