Investing.com - The U.S. dollar rose to one-month highs against its Canadian counterpart on Wednesday, after data showed that U.S. private sector added more jobs than expected last month and as Greek debt concerns continued to dampen market sentiment.
USD/CAD hit 1.2546 during early U.S. trade, the pair's highest since June 5; the pair subsequently consolidated at 1.2550, gaining 0.47%.
The pair was likely to find support at 1.2358, Tuesday's low and resistance at 1.2563, the high of June 5.
Payroll processing firm ADP reported on Wednesday that U.S. non-farm private employment rose by 237,000 last month, above expectations for an increase of 218,000.
The economy created 203,000 jobs in May, whose figure was upwardly revised from a previously reported increase of 201,000.
Sentiment mildly improved earlier, after Greek Prime Minister Alexis Tsipras sent new proposals as part of a request for a third bailout, indicating that he was prepared to accept the majority of spending cuts demanded by the country’s creditors.
But investors remained cautious as German chancellor Angela Merkel said Wednesday there will be no negotiations on a new bailout for Greece before Sunday’s referendum.
Greece became the first developed country to default on the International Monetary Fund after its second bailout program expired late Tuesday. The IMF confirmed that the Greek government failed to make a scheduled €1.6 billion loan repayment.
The fund said Greece can now only receive further funding after its arrears are cleared. Greece asked for a last-minute repayment extension on Tuesday, which the fund said it will consider "in due course."
Speculation was mounting that Prime Minister Tsipras would cancel a snap referendum due to be held on July 5 on whether to accept the terms proposed by lenders for extending the country’s bailout.
The loonie was steady against the euro, with EUR/CAD at 1.3918.
Also Wednesday, research group Markit said that Germany's manufacturing purchasing managers' index remained unchanged at 51.9 last month, in line with expectations.
France's manufacturing PMI ticked up to 50.7 in June from 50.5 the previous month, confounding expectations for an unchanged reading.