Over the past week, we've seen an increase in currency volatility as the USD has taken a fall against many of the major currencies on forex trading demos.  As we begin the month of June, there seemed to be little momentum to slow this trend, with forex traders finding numerous reasons to bet against a Dollar recovery.

Some would say this is due to the beginnings of a global economic recovery in which the U.S. is lagging behind - indicated by moves to emerging-market currencies, and seen in the slight strengthening of hard-hit economies like that in China.

Looking north, the Canadian dollar gained 9% against the U.S. dollar, the largest increase since 1950 on forex practice.

That aside, it's going to be another busy week in Forex news - beginning Wednesday, the markets are expected to react to Bernanke speaking, the bank rate changes from the UK and Canada, and unemployment numbers out of Canada and the U.S. 

With that said, with Tim Geithner visiting China, the trend in dollar weakness could be slowed if the Chinese show confidence in their U.S. investments.  Furthermore, with increasingly attractive bond rates, the dollar could be propped up as more investors are compelled to buy. 

Regardless of what side you're on, be sure to prepare your strategies for the week, because we're going to see some more big moves before the close on Friday.