FXstreet.com (Barcelona) - Dollar rebound Tuesday, after the Dow Jones Industrial Average retreated more than 100 points after rallying a day earlier, leading investors back to the major funding currency of their riskier bets, the dollar. Only Gbp sustained the overnight rally that reach a 6 week high against dollar, and stayed higher on the day. Euro fell as low as 1.3420 by the end of the American session and remains under pressure, as the ECB members change tone increasing chances of a rate cut for the euro zone next April 2nd.
FED's plan to end recession and avoid risk of deflation, will begin tomorrow, as the Federal Reserve is going to be pumping U.S. dollars into the market buying long-term Treasuries in an attempt to drive longer-term interest rates. The first operation of $300 billion is aimed at notes maturing from February 2016 to February 2019, and in the coming days, the central bank plans to buy debt maturing between March 2011 and February 2039, according to the tentative schedule. If the plan works the U.S. will be leading the global economic recovery, gaining own strength and detaching forex market from stocks.