Today the Fed makes the first support for the dollar by many times. For first time the dollar gain so much against the euro after the very disappointed reports for the U.S. growth forecast and the better than expected Euro Zone and especially Germany Sentiment Index. The dollar was trading at 1.5493 against the euro during the noon in Europe. The Fed finally takes action as announced plan for support of the credit market crisis with fresh $200B available through weekly auctions. Just for 3-hours after the news the dollar gain over 200 pips against the euro. If the Fed measures are adequate and continue to support the dollar in near-term the trade should back at the levels below 1.50. The Fed statement today is signal that finally the Fed is care about the crisis in U.S. mortgage sector. But it is necessary more steps to stop the falling dollar.
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