Euro rallies on Germany’s green light for bailout fund

The euro hit a four-month high yesterday after Germany’s top court greenlighted Europe’s new bailout fund, while hopes for more monetary stimulus from the Fed at its meeting today supported stocks.

Germany’s Constitutional Court cleared the way for the country to ratify the European Stability Mechanism, boosting hopes the eurozone is finally putting in place the tools to resolve its three-year old debt crisis.

“Today’s positive ruling from the court solidifies the view that European officials are getting control over the sovereign debt crisis,” said Boris Schlossberg, MD of FX strategy at BK Asset Management in New York.