The USD/CAD pair refreshed multi-year lows during the Asian session, with bulls awaiting sustained weakness below the key 1.2500 psychological mark. The pair added to this week's losses and remained depressed through the first half of the trading action on Thursday. The Fed Chair Jerome Powell's reassurance that interest rates would stay low for a long time kept the US dollar bulls on the defensive. Apart from this, the continuation of a bullish run in crude oil prices underpinned the commodity-linked loonie and exerted some pressure on the USD/CAD pair.
During his second day of testimony before the House Financial Services Committee on Wednesday, Powell showed commitment to the current ultra-easy monetary policy and reiterated that the Fed has no plans to cut back on money-printing or raise interest rates in the short term. Powell also calmed fears about inflation and said that he will only start worrying if prices begin to rise in a persistent and troubling way.