The U.S. Dollar rallied against the majority of its counterparts as online Forex trading investors sought safe havens after the Bank of Canada announced that it would leave benchmark interest rates unchanged at 1.0% and may delay any further increases. The central bank suggested that the nation’s economy slowed down, especially in the latter part of 2012. The greenback retreated from a one-week high against the Euro after the U.S. House of Representatives voted to temporarily suspend the debt ceiling.
The Bank of England released the minutes from its recent Monetary Policy meeting. The minutes showed that bank officials were convinced no additional monetary easing would be needed for now. However, the British Pound remained under pressure as Prime Minister David Cameron stated that he would hold a vote on the U.K.’s membership in the European Union by the end of 2017. The Sterling managed to rebound against the Euro currency and the U.S. Dollar after a release confirmed that the number of people filing for unemployment benefits dropped to the lowest level since June of 2011.
Other news revealed that the Euro traded mixed on positive comments by the ECB President Mario Draghi, but declined after the International Monetary Fund lowered the economic growth forecasts for the Euro-zone.
And in the South Pacific, the Australian Dollar weakened after live Forex reports showed that consumer prices rose last quarter. However, this increased the likelihood the Reserve Bank of Australia may lower the cost of borrowing money in the near future.