COZforex: The US dollar was little changed against the Canadian dollar on Tuesday, after Federal Reserve Chairwoman Janet Yellen said she expects there to be "a great deal of continuity" in the bank’s policies, ahead of prepared testimony to Congress later in the day.

USD/CAD touched session highs of 1.1091 and was last up 0.04% to 1.1060. The pair is expected to find support at 1.1028, and a fall through could take it to the next support level of 1.0983. The pair is expected to find its first resistance at 1.1105, and a rise through could take it to the next resistance level of 1.1137.

The Bank of Canada (BoC) Deputy Governor, John Murray, opined that a weakness in the Canadian Dollar and a strengthening of the global economy would foster broader economic growth in the Canada. He further indicated that inflation in the economy would probably return to 2% over the period of the next 2 years.

In prepared remarks released before her testimony to the House Financial Services Committee later in the day, Fed Chair Yellen said that the central bank would taper the pace of its asset purchases at future meetings if the economy continued to improve as expected.

“Let me emphasize that I expect a great deal of continuity in the Federal Open Market Committee’s approach to monetary policy,” she said.

She added that the pace of the central bank’s bond purchases are not on a “preset course”, while reiterating that Fed plans to hold interest rates at zero “well past” the time the jobless rate falls below 6.5%.

(COZ forex UK)