Live blog and video of Yellen's testimony before House panel

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The rising star overnight has been the CAD after the Bank of Canada delivered the expected interest rate hike at this morning's monetary policy meeting.

Despite Yellen's testimony signaling a "gradual" tightening in interest rates would be appropriate, it also quashed the idea of the Federal Reserve adopting an aggressive rate hike path, as the Fed believes it is not that far from the neutral rate.

EUR/USD dipped by 0.44% to $1.1415 while EUR/GBP fell 0.82% to £0.8853.

Eurozone industrial production growth exceeded expectations in May with the Eurostat report showing Industrial output grew 1.3% m/m following a revised 0.3% rise in April.

The Fed's preferred measure of inflation, the personal consumption expenditures index, has also been slipping.

According to her, the tight labor market may have upward pressures on wages and prices, as slack in the economy diminishes.

"We want to make sure that we manage this in a way that is not disruptive to financial markets", said Yellen. "The market was a little anxious but she's back to the same dovish Yellen".

-The 10-year U.S. Treasury yield dropped four basis points to 2.32 percent.

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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.

Beyond monetary policy, political tensions, which pressured the USA dollar lower on Tuesday, continued to weigh on greenback Wednesday.

The dollar, which fell against the euro soon after the release of the remarks, reversed course and was trading near session highs against the European common currency. We shall see if this influences, but Goldman's always seems to get a bit more airtime in its calls than other houses.

Stock movers: Shares in NRG Energy Inc.(NRG) soared more than 29% after the company launched transformation plan (http://www.marketwatch.com/story/nrg-energy-reveals-transformation-plan-to-cut-costs-slash-debt-and-divest-assets-2017-07-12) to cut costs, slash debt and divest assets. PayPal shares rose 3.3%, while Square shares advanced 3%.

-The yen gained 0.7 percent to 113.14 per dollar.

-West Texas Intermediate crude climbed 1 percent to settle at $45.49 a barrel.

August gold settled at USD1,217.30/oz, down USD1.80, or 0.2%, staying near 4-month lows.

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