The Fed expanded its Operation Twist and so has left its options open for future easing. Market focus for the Euro today is on Spanish bond auctions and services and manufacturing data.
Yesterday the Fed stopped short of implementing a more aggressive programme of buying bonds outright, or QE3, which had been expected by some traders.
The central bank had decided to expanded its "Operation Twist" by $267 billion and run through the year, not ending in June. What this means is, that it will sell that amount of short term securities in order to purchase longer term securities, with a view to keeping long term borrowing costs down.
In the opinion of many analysts, the outlook for the greenback remains uncertain as more market players are likely to position for fresh stimulus from the Fed, after the central bank downgraded its U.S. growth forecast.
The U.S unemployment rate remains far above its target and is unlikely to reduce until 2014. The economic recovery, such as it is, remains fragile.
The Dollar index remained above a one month low of 81.186 and earlier today stood at 81.579.
The Euro was down on the day, off from a one-month peak of $1.2748 set on Monday, at $1.2675.
Yesterday the Fed stopped short of implementing a more aggressive programme of buying bonds outright, or QE3, which had been expected by some traders.
The central bank had decided to expanded its "Operation Twist" by $267 billion and run through the year, not ending in June. What this means is, that it will sell that amount of short term securities in order to purchase longer term securities, with a view to keeping long term borrowing costs down.
In the opinion of many analysts, the outlook for the greenback remains uncertain as more market players are likely to position for fresh stimulus from the Fed, after the central bank downgraded its U.S. growth forecast.
The U.S unemployment rate remains far above its target and is unlikely to reduce until 2014. The economic recovery, such as it is, remains fragile.
The Dollar index remained above a one month low of 81.186 and earlier today stood at 81.579.
The Euro was down on the day, off from a one-month peak of $1.2748 set on Monday, at $1.2675.
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