USD/CAD was the big event of the day as the weakness from Yellen’s testimony and Bank of Canada rate hike plummeted the pair to a 13-month low. Meanwhile, the U.K. employment data supported the British pound against the G10 currencies.
Yellen Failed to Support the Greenback
The U.S. dollar slushed on Wednesday as Fed Chair Janet Yellen failed to emphasise sufficiently on the economic progress during the first half of her semi-annual testimony before the House Financial Services Committee. We could say that Yellen kept a neutral or a dovish tone, despite that she mentioned that “The Committee continues to expect that the evolution of the economy will warrant gradual increases in the federal funds rate over time to achieve and maintain maximum employment and stable prices”. USD/JPY experienced its worst single day slip for more than a month as it dropped by 0.54%. Today, all the USD cross pairs will be driven by Fed Yellen’s testimony before the U.S. Senate.
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