The dollar fell against the euro and a basket of currencies on Tuesday as traders closed out some positions before the year-end and ahead of data on the U.S. housing market and consumer confidence later in the day.

The U.S. government is  pumping $5 billion into auto and mortgage lender GMAC and lending up to $1 billion to automaker General Motors ensuring the solvency of a company considered crucial to GM's survival.

The financing arm of General Motors remained silent Monday on whether it had raised enough capital to become a bank-holding company and eligible for access to billions in federal bailout money.

Manufacturing in the U.S. Midwest fell to its weakest level in almost 12 years in November as steel and machinery production dropped, the Chicago Federal Reserve Bank said Monday.

While the overall market is unlikely to stage a major turnaround any time soon, experts agree there are a handful of investments that are heating up and could help you recoup some gains.

The dollar fell broadly on Monday, eroded by a grim outlook for the U.S. economy and concerns Israeli attacks in the Gaza strip will destabilize the Middle East and threaten oil supplies.

Friday: The day after Christmas, and all through the U.S., retail stores are hurt by abysmal holiday sales. But there is a slightly brighter consumer spot: online merchandisers like Amazon.com, which reported its best holiday sales ever. Auto maker stocks climbed and techs slide, bringing the market mostly flat. Experts told CNBC that strong Web retail is a very good omen for the economy — and pointed to specific stocks that may jump after the Obama inauguration.

The U.S. dollar rose versus the yen Friday after data showing sharp declines in Japan's industrial output and inflation fueled speculation the Bank of Japan would pump large amounts of cash into the economy.

Wednesday: Christmas Eve is short on economic cheer. Unemployment claims jumped by 30,000 to a 26-week high. New U.S. durable-goods orders fell 1 percent in November, which was less severe than feared — but it followed a sharply revised drop in October orders. CNBC heard from experts who predict a slow awakening beginning after H2 2009 — and one analyst who says we're already in a bull market (!).

The big questions for the coming year are how long and deep will the recession be  and how it will  compare to those  of the past.

The number of U.S. workers filing new claims for jobless benefits jumped by 30,000  as the country's year-long recession continued to chill the labor market, according to a government report.

The dollar fell against most major currencies on Wednesday as data on unemployment, spending and durable goods orders reinforced the bleak outlook for the U.S. economy in the year ahead.

A drop in gasoline prices gave consumer sentiment an unexpected lift, but the data gloom continues: the recession deepened and both new and existing home sales fell by a record amount in November. Investors' flight to quality goes on; retail stores are eerily quiet; and reseachers at Challenger are predicting more than 1 million job cuts next year. But one expert sees a spark that'll start the economic thaw in 2009.

The first half of next year will be very bad for the world economy, but investors will find value in stock markets as some deeply discounted shares will stage a rebound, Marc Faber, editor and publisher Gloom, Boom and Doom Report, told CNBC.

The dollar edged up against most major currencies in thin pre-holiday trade Tuesday as year-end demand for the greenback blunted another round of grim economic data that suggested a prolonged U.S. recession ahead.