The dollar dropped against its major counterparts ahead of the 2-days FCOM meeting.
DXY index, that IntercontinentalExchange Inc uses to monitor the dollar’s movements against 6 major currencies of the US main business partners, slashed towards 4-month low amid the speculations about the next QE3 by the Fed. Demand for the euro was limited before the reports were released this week.

Many experts think that the Fed will state about further easing measures. If QE3 is launched, the dollar will continue its downward move.
The Fed bought securities for $2.3 bn from 2008 to 2011 during two rounds of so-called quantitative easing. On August 31, Ben Bernanke expressed support to such measures in his speech and suggested following steps for fighting against high unemployment rate, the issue that is of great importance now.
However, the economists are still pessimistic about the euro as there are real threats for the EZ economies.
Greece is still in focus. The leader of the left-wing party reported that the decision about reduction of expenses was not taken. Moreover, he added that poor citizens must be protected against austerity measures.
George Soros said recently that while Germany requires more austerity measures from Europe, it will deep further to recession. As the result, the crisis will hit Germany itself in the upcoming 6 months.