The Swiss Franc gained against the U.S. Dollar and remained almost unchanged versus the Euro after the Swiss National Bank reported record high foreign currency reserves. This occurred while the Euro region debt crisis deepened, prompting policy makers to protect the Franc’s ceiling.
The shared currency traded at a three-week high against the Yen on speculation the European Central Bank is stepping up efforts to eradicate the debt crisis. The 17-nation currency also advanced against the majority of its Forex market peers after a release showed that Italy’s economy contracted less than anticipated. The Euro remained strong as the E.U. reported that there were no requests for the rescue fund to purchase bonds. It continued to gain despite a drop in Germany’s factory orders.
The British Pound trimmed losses subsequent to an announcement indicating that industrial output declined less than predicted in the month of June. The metrics seem to confirm that the recession wasn’t as pronounced in the second quarter of 2012.
In other news, Australia’s Dollar rallied the most since March versus the greenback after the country’s central bank stated that the current policy was “appropriate,” and left the benchmark interest rate at 3.5%. The Aussie advanced against the rest of its Forex exchange peers as the bank’s Governor, Glenn Stevens, announced that the “nation’s growth is close to trend.”
Lastly, the Canadian Dollar traded at a three-month high due to an increase in risk appetite and a hike in crude oil prices.