European session: the dollar fell

The dollar dropped to the weakest in seven months versus the yen amid speculation the Federal Reserve will announce it will buy bonds under a program of quantitative easing that tends to debase the currency.

The greenback slid toward a four-month low against the euro before the central bank also releases policy makers’ forecasts for unemployment, inflation and the expected path of the federal funds rate.

The central bank is also predicted to extend the duration of its zero-interest-rate policy into 2015. Two previous series of bond purchases totaling $2.3 trillion have failed to revive the labor market, which Fed Chairman Ben S. Bernanke said last month is a “grave concern.”

The euro strengthened against most of its major peers today even as Greece’s Prime Minister Antonis Samaras received the second refusal in four days from coalition partners over plans to reduce spending that are key to receiving international aid. It rose yesterday after a German court said the country can ratify the European Stability Mechanism, a 500 billion-euro rescue fund.

EUR / USD: during the European session, the pair rose to $ 1.2931 and retreated

GBP / USD: the pair grown, reaching a high of $ 1.6125 and retreated

USD / JPY: the pair dropped to a mark of 77.57

At 12:30 GMT, Canada will release the house price index in the primary market for July and capacity utilization in Q2. At 12:30 GMT the U.S. producer price index will be released, including excluding prices for food and energy prices in August, the number of initial claims for unemployment insurance and the number of repeated applications for unemployment benefits. At 16:30 GMT FOMC decision will be published on the basic interest rate and the accompanying statement will be made FOMC. At 18:00 GMT the U.S. will publish a monthly report on the budget and economic outlook will be made by FOMC. At 18:15 GMT the press conference of the Federal Reserve System