The strength of the dollar took a step back against the euro and yen as a result of poor housing data which caused uncertainty about the ability for the economy to turn around.

Sales for new homes in the U.S. fell for the second straight month in February, supporting the euro’s rise to its highest in three week in Friday trading. These weak new-home sales numbers have made the market a bit concerned about the sustainability of the recovery, according to one currency strategist. As the stock market regained some footing, risk aversion waned some, and the dollar reclaimed some of its losses.

The euro was also bolstered by encouraging news from France, as confidence in business was up and the statistics bureau for the government held that this euro zone’s second-biggest economy will avoid a recession this year.

Traders weren’t emboldened to place aggressive bets due to a mixed economic picture. The major currencies stayed within their recent ranges for the week.

Generally, as economic data have improved in the U.S., bond yields have increased; this, in turn, has attracted investors to the dollar for most of the month. Japan’s posting of a trade surplus this week has stalled the U.S. currency’s gains, leaving the question in the minds of some analysts as to how high the dollar can climb against Japanese currency.

A senior foreign-exchange strategist sees the dollar remaining steady against the yen in the coming weeks, but says the Japanese currency will rebound later in the year. U.S. interest rates have really been driving the dollar over the yen.

The recent highs that the dollar has experienced aren’t expected to be broken while the housing market continues to drive uncertainty in aiding the economy in general to rebound. There are signs that housing is improving, but for now, it’s not enough.