The U.S. dollar held steady at one-week lows against its Canadian counterpart on Tuesday, as sentiment on the greenback weakened ahead of testimony by Federal Reserve Chair Janet Yellen due later in the day, although lower oil prices limited the Canadian currency’s gains.
USD/CAD hit 1.2763 during early U.S. trade, the pair’s lowest since June 13; the pair subsequently consolidated at -, shedding -%.
The pair was likely to find support at 1.2655, the low of June 10 and resistance at 1.2943, the high of June 15.
The greenback remained under pressure since the Federal Reserve left interest rates on hold last week and lowered forecast for how much they expect to hike interest rates in the next few years.
Investors were now eyeing testimony on monetary policy by Fed Chair Janet Yellen, due to begin later Tuesday.
Meanwhile, the commodity-related Canadian dollar’s gains were limited as oil prices moved back lower after two consecutive sessions of gains.
The loonie was also higher against the euro, with EUR/CAD slipping 0.27% to 1.4447.
Data earlier showed that the ZEW index of German economic sentiment rose by 12.8 points to a reading of 19.2 in June. Economists had expected the index to decline to 4.7.
The ZEW index of euro zone economic sentiment also surprised with an increase to 20.2 in June from 16.8 a month earlier, settling well above forecasts for a drop to 15.3.