Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Monday, as Friday's strong U.S. economic reports continued to support demand for the greenback and investors eyed an upcoming report by the Institute of Supply Management U.S. on manufacturing activity.
USD/CAD hit 1.1312 during early U.S. trade, the session high; the pair subsequently consolidated at 1.1293, adding 0.24%.
The pair was likely to find support at 1.1247, the low of October 20 and resistance at 1.1362, the high of October 16.
The greenback remained supported by signs the U.S. economic recovery is on track fuelled fresh speculation the Federal Reserve could raise interest rates earlier than expected.
On Friday, the University of Michigan reported on Friday that its consumer sentiment index rose to a seven-year high of 86.9 this month from 86.4 in September.
A separate report showed that the Chicago purchasing managers' index rose to a three-and-a-half year high of 66.2 in October from 60.5 in September, confounding expectations for a reading of 60.0.
The Canadian dollar had come under pressure on Friday after Statistics Canada reported that the country's gross domestic product retreated 0.1% in September, compared to expectations for stagnation. In August, Canada's growth rate was flat.
The loonie was steady against the euro, with EUR/CAD inching up 0.03% to 1.4113.
The single currency weakened earlier, after Markit research group said that the German manufacturing purchasing managers' index fell to 51.4 in October from a reading of 51.8 the previous month, confounding expectations for the index to remain unchanged.
Markit's manufacturing PMI for the entire euro zone ticked down to 50.6 this month from 50.7 in September. Analysts had expected the index to remain unchanged.