Investing.com - The U.S. dollar dropped to two-and-a-half week lows against its Canadian counterpart on Wednesday, as demand for the greenback continued to weaken after rising sharply in last week's sessions.
USD/CAD hit 1.2217 during early U.S. trade, the pair's lowest since May 22; the pair subsequently consolidated at 1.2207, tumbling 1.03%.
The pair was likely to find support at 1.2167, the low of May 22 and resistance at 1.2442.
The greenback weakened as investors continued to lock-in profits from the currency's recent rally after an above forecast U.S. jobs report on Friday underlined expectations that the Fed could start to raise rates at its September meeting.
The loonie was higher against the euro, with EUR/CAD declining 0.57% to 1.3834.
Sentiment on the euro remained fragile as Athens was expected to resume talks on a cash-for-reforms deal with its international lenders later in the day.
Greece’s bailout agreement with the European Union and the International Monetary Fund is set to expire at the end of this month and it cannot make further debt repayments without a new deal.
The single currency had strengthened earlier as a selloff in European government bonds continued, with German 10-year bund yields rising to the highest levels since September 2014 earlier Wednesday.
German bund yields act as benchmarks for European financial markets and higher yields push the euro higher against the dollar. Yields rise as prices fall.