US Dollar Lower on Speculation that QE Will Continue

Greenback is lower today, struggling as Forex traders await the outcome of the two-day Federal Reserve policy meeting underway right now. Right now, there is speculation that quantitative easing will continue, and that is undermining the US dollar.

One of the questions that many investors, Forex traders, and even “regular” folks want answered is this: When does the Federal Reserve plan to taper off its asset purchase program?
There are hopes that Ben Bernanke will have something to say about the situation later today when he emerges from a two-day Federal Open Market Committee meeting. Speculation has been running rampant about whether the asset purchase program will be ended sooner, or whether it will be ended later.
Right now, bets are leaning toward the idea that the quantitative easing program will last a little bit longer. The result of this speculation is a lower dollar today. QE debases a currency in the hopes that it will kickstart the economy. With the US economic recovery flagging a bit, there are some that think the asset purchase program needs to go a little bit longer. And that means a potentially weaker dollar.
At 14:23 GMT EUR/USD is up to 1.3393 from the open at 1.3392. GBP/USD is up to 1.5664 from the open at 1.5644. USD/JPY is down to 95.0800 from the open at 95.3265.

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