22, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Euro rose to a six-month high against the U.S. dollar on Tuesday. Investors traded currencies of developing countries as the less risky ones, on expectations of narrowing the Fed's asset purchase program.

Market participants' attention was focused on the results of the meeting minutes released yesterday by the Federal Reserve, which was held July 30-31. Investors are looking for a reason that will minimize the asset purchase program at the September meeting. These purchases helped to keep interest rates low and forced investors to invest in emerging markets that offer higher returns. In case of minimizing the program of quantitative easing by hand, investors give up assets in developing countries.

Investors get rid of the developing countries currencies preferring a more secure and safe assets such as the euro. The European single currency jumped to 1.3452 per dollar, the highest level since Feb. 14 against 1.3333 late Monday.

The total mortgage lending in the UK has risen to its highest level in nearly five years, indicating that the measures undertaken by the government, contribute to the growth of the housing market.