Dollar Falls Toward Five-Week Low Versus Euro Before Housing Report

Relative to the euro, the dollar has fallen to a five-week low. This article demonstrates the power of speculation in today's economic systems. Speculators expect the housing market index, which reports today, to show low demand and lack of momentum in the housing market. Also, the FOMC makes its announcement on Tuesday with regards to what the target federal funds rate level will be. Speculators think (rightfully so) that the rate will stay unchanged at a rate of %0.00 to %0.25. The question is whether or not the Fed will use quantitative-easing measures to stimulate the economy. This is an attempt to raise the money supply in an economy by increasing excess reserves - this would put downward pressure on the dollar though.