Investing.com – The U.S. dollar slipped lower against the Canadian dollar on in quiet trade on Wednesday, a day after Federal Reserve Chairwoman Janet Yellen confirmed that the U.S. central bank is on track to reduce its stimulus program.
USD/CAD hit 1.0976, the lowest since February 7 and was last down 0.15% to 1.0990.
The pair was likely to find support at 1.0966, the low of February 7 and resistance at 1.1024, the session high.
In her first Congressional testimony since her appointment as Fed Chair, Ms. Yellen told the House Financial Services Committee that the central bank would continue to gradually reduce the pace of its asset purchase program.
She also reiterated that Fed plans to hold interest rates at zero “well past” the time the jobless rate falls below 6.5%.
Investors were beginning to turn their attention to Thursday’s U.S. retail sales report, amid concerns that sales volumes would be lower in January after a 0.2% gain the previous month.
Elsewhere, the loonie, as the Canadian dollar is also known, was sharply higher against the euro, with EUR/CAD dropping 0.70% to 1.4905.
The euro weakened broadly after European Central Bank Executive Board member Benoit Coeure said in an interview with Reuters on Wednesday that the bank is considering a negative deposit rate very seriously.
He added that the ECB does not see deflation in the euro area, adding that the bank sees low inflation, which should increase slowly back to its 2% target.