The US dollar dropped as worse-than-expected macroeconomic reports from the Untied States fueled speculations that the Federal Reserve will maintain quantitative easing.

The US dollar ended the week with gains as positive macroeconomic data supported expectations of an end to Federal Reserve’s quantitative easing. The gains were limited and the greenback fell versus the Japanese yen, though, as not all reports were good.

US dollar is losing ground today, thanks in part to concerns that the economy is not ready to recover at quite the rate some had come to expect. The news is weighing on the greenback, and sending it lower against most of its major counterparts.

US dollar is down against most of its major counterparts on what many consider profit taking right now. With Forex traders preparing to reposition themselves in light of the next round of economic data and predictions for central bank movements, it is little surprise that some profit taking is happening.

Economic data is supporting the US dollar today. With the best economic confidence readings in a long time, some think that the Fed will be forced to reduce its easing efforts sooner rather than later. This is adding fuel to the fire for the US dollar today.

The major theme of this week was speeches of various Federal Reserve members and, most importantly, Chairman Ben Bernanke. Comments of policy makers did not help to understand when the central bank is going to end quantitative easing. The confusion resulted in a mixed performance of the US dollar.

Ben Bernanke may be daring investors to buy stocks, but this attempt at encouraging an investment in risk assets doesn’t seem to be working out today. Risk aversion has set in, and the US dollar is higher, and risk assets are lower.

The US dollar was volatile today as Forex market participants were trying to interpret the words of Federal Reserve Chairman Ben Bernanke and to guess whether the central bank will remove stimulus.

The US dollar fell against the euro today on speculations that the Federal Reserve will maintain its stimulus program. The currency edged higher versus the Great Britain pound and the Japanese yen.

The US dollar recovered a bit today after yesterday’s losses, but still remained soft amid speculations that the Federal Reserve may reduce its asset purchase program.