23, September 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

After the Fed said that it would continue the program of asset purchases investors cut positions on the U.S. currency and the dollar index on Thursday stopped about seven monthly level.

On Wednesday, the dollar index fell at 1.1 %, this is the biggest one-day falling in the last eight weeks. Fed's easy-money policy will help to ensure that high-yielding currencies such as Euro, British Pound, Swiss Franc which will be in a great demand.

According to the head of currency strategy at CIBC World Markets Jeremy Stretch U.S. bond yields fell and it would be more appropriate to transfer assets from dollar to euro and pound.

During the ECB meeting that will be held the next month ,the single European currency may cost $ 1.37 which would be a headache for the ECB President Mario Draghi.

The Japanese currency fell due to the unexpected decision of the Fed's policy. On Thursday, the yen fell against the Swiss franc, which is also a safe haven currency.