The dollar weakens against major currencies during the European session on Wednesday in a continuation of a downward trend that has begun late on Tuesday in New York.
There are strong expectations on the markets triggered by announcing the U.S. monetary policy by the Feds, scheduled for noon American time.
In this regard, the authorities are expected to announce a renewal of the so-called Operation Twist, which began last September and it expires this month. This transaction is the sale of short-term debt by purchasing long-term bonds, and has given good results in due course to the world's largest economy.
Taking account of the weakening of the main U.S. economic statistical readings within the recent months, there are certain rumours that the Feds will take the above-mentioned decision and will announce a new stimulus step in the economy which is known as QE. Should this happen, it would be the third time the programme is implemented.
The certain fact is that in this case the money will flow back into the economy, which could generate a moderate weakening of the dollar on all fronts, but also provide upward momentum to the actions of the New York Stock Exchange, which is eager to see a plan of this nature.
Of course not everything is positive. The search for risky assets will be limited by the dramatic financial situation in Europe.
The declaration of the G20 meeting, which ended on Tuesday, made another gesture of goodwill by the assistant leaders, who agreed to take steps to prevent countries with the greatest difficulties in Europe, that may suffer from greater problems. Among the participants there was the Prime Minister of Italy, Monti and the Spanish leader, Rajoy.
These situations could lead to growth of the European currencies, but a very moderate, far from the strong impulses that might have taken on previous occasions.
Completing the day's news agenda there will be a release of the oil inventories in the USA at 10:30 Eastern time, which can give a good move to the currencies tied to the "black gold" such as the Canadian dollar and the Mexican peso.

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