Italian and Spanish bond auctions go badly and the euro is up?

Perfect illustration of my “less bad” currency scenario today. The euro is up 0.33% against the dollar—despite disappointing news from Italian and Spanish bond auctions today—because the U.S. dollar is down—on a “feeling” that the Federal Reserve may say something tomorrow at the end of its two-day meeting that would increase the odds of a new program of quantitative easing.