Unless the US becomes a net saver, another global financial crisis triggered by a dollar crisis could be inevitable.

The US dollar and Japanese yen both fell lower on Monday, though the latter was the weakest of the majors, as investor sentiment continued to build despite the fact that General Motors Corp. unsurprisingly filed for bankruptcy protection.

This week we look at three possible paths we can lead the world down.  We then review a number of charts and data on the housing market.

Why is it that the harder someone works, the luckier they get?

Two auto-parts suppliers have already filed under Chapter 11. GM is expected to do so momentarily.

Why does this matter to trading?

The statistics on the US dollar are ghastly. Through the month of May, the world’s most actively traded currency plunged 547 pips or 6.5 percent on a traded weighted basis to its lowest level this year. With the momentum building, there was no shortage of reason to sell this currency.

Market prices and economist forecasts overwhelmingly point to unchanged European interest rates through the coming meeting, but financial markets will listen closely for details.

Traders should keep an eye on major equity indexes like the S&P 500, as a rally above its May 8 high of 930 would suggest that risk appetite may be high enough to lead FX carry trades higher.

There will be a variety of growth-related indicators released next week, as the Purchasing Managers’ Index (PMI) for the UK manufacturing, construction, and services sectors are due out.