Dollar Slides More Than 1% Ahead of Fed (UUP)

The dollar slipped against most major currencies Thursday, as investors reduced short positions ahead of the Federal Reserve's meeting next week. The Fed is expected to announce additional quantitative easing measures. The Euro is up 1.13% this morning, to $1.392. The British Pound Sterling is up 1.2%, to $1.596. According to a Reuters report, "Wall Street analysts expect the Federal Reserve to buy $80 billion to $100 billion worth of assets per month under a new program widely expected to be unveiled on Nov. 3, according to a Reuters poll. Estimates for how much the Fed will eventually spend varied from $250 billion to $2 trillion. The market has been scaling back expectations as the event draws nearer." The Fed is announcing the move amid stagnant job growth and a hobbled economic recovery in the United States. Peter Frank, currency strategist at Societe Generale in London, told the news service about the implications the move may have on the dollar. "The issue is whether the market believes the Fed will deliver significant quantitative easing over a definitive time line," said Frank at Societe Generale. "If they do, the dollar will weaken." The PowerShares US Dollar Index UUP is down 1.2%, or $0.27, to $22.38. The Reuters report notes that "The dollar is holding above a 15-year low of 80.41 yen hit earlier this week on EBS, but investors remain vigilant for any yen-weakening intervention after authorities entered the market last month."