Dollar lower after dovish Yellen

Investing.com - The dollar fell Thursday as Fed Chair Janet Yellen's testimony to Congress was deemed on the dovish side.The dollar index was off 0.24% at 95.32 at 02:30 ET, close to 10-month lows.Yellen reiterated the case of gradual tightening as the labor market remains buoyant.But she noted the neutral rate remains relatively low, while highlighting sluggish inflation.That could suggest the pace of tightening might be slower than previously expected.The market odds of a December hike stand at under 50%.The loonie firmed against the dollar as the Bank of Canada as widely expected raised rates for the first time in seven years. The euro strengthened against the dollar, trading up 0.30% at $1.1446.The pound was trading above $1.29 after the U.K. unemployment rate fell to its lowest level since 1975.Sterling had been under pressure after BoE deputy governor Ben Broadbent came out against an early rate hike.The dollar retreated further against the yen to trade below the 113 mark.Yuan strengthened against the dollar after strong Chinese trade data.