Silent Yellen: USD/CAD dips below 1.25

Traders in search of hawkish hints found nothing as Fed chair Yellen focused on regulations and remained silent on the policy path. 

Consequently, the US dollar is being offered across the board. The USD/CAD fell to 1.2484; the lowest level since August 1. The 10-year US Treasury yield fell close to 2 basis points to 2.175%. Meanwhile, the 2-yr yield is flat lined around 1.338%. 

A dud Jackson Hole event shifts focus to next week’s Canada quarterly gross domestic product report. The Baker Hughes US oil rig count report due at 17:00 GMT and the resulting action in the oil prices could influence the Canadian dollar. 

USD/CAD Technical Levels

A break below 1.2483 [July 24 low] would open doors for 1.2413 [July low] and 1.24 handle. On the weekly chart, a major support is seen at 1.2276 [50-MA]. On the higher side, a break above 1.2514 [previous day’s high] would expose 1.2536 [5-DMA] and 1.2550 [1-hour 100-MA].