The U.S. Dollar rallied to a two-year high against the Euro after the Federal Reserve published the Minutes from the recent policy meeting. According to FX news, the Minutes did not suggest the need for further monetary easing at this time, thereby disappointing investors who predicted the central bank would implement monetary stimulus. The greenback continued to climb versus the Euro and the Yen as the Minutes revealed that only a few policy makers believe the bank will need to take action in order to bolster growth in the job market.
The British Pound traded at the highest price since November 2008 versus the Euro as Germany’s top Court issued a statement indicating that a decision relating to legislation for the Euro region’s Bailout Fund may take months instead of weeks, given the complexity of the issue. The Sterling gained during the early live Forex trading session against the U.S. Dollar on speculation the Federal Reserve’s Minutes will show that the bank may expand the stimulus program and therefore weaken the greenback.
Other Forex charts showed that the Canadian Dollar remained high versus its American counterpart following the release of the Federal Reserve’s Minutes from June as they revealed that a small number of policy makers were in favor of expanding stimulus. The Loonie rose in tandem with the South Pacific currencies after the price of commodities increased.
Lastly, the Australian Dollar snapped a three-day decline on a private release confirming that Consumer Confidence reached a five-month high.