Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Monday, pulling away from three-week lows as demand for the greenback continued to be broadly supported.
USD/CAD hit 1.1258 during early U.S. trade, the session high; the pair subsequently consolidated at 1.1251, adding 0.16%.
The pair was likely to find support at 1.1189, Friday's low and resistance at 1.1327, Friday's high.
Demand for the dollar continued to be underpinned after the minutes of the Federal Reserve's October meeting indicated last week that officials believe the economic recovery is strong enough to withstand external threats to growth, but offered little additional clarity about when rates could start to rise.
The Fed wound up its asset purchasing stimulus program last month and is expected to start raising rates around September 2015.
The greenback dropped to a three-week trough against the Canadian dollar on Friday, after data showed that Canadian consumer price inflation rose 0.1% last month, compared to expectations for a 0.3% fall, after a 0.1% uptick in September.
Core consumer prices in Canada, which exclude the eight most volatile items, rose 0.3% in October, more than the expected 0.2% gain, after a 0.2% increase the previous month.
The loonie was lower against the euro, with EUR/CAD rising 0.36% to 1.3969.
The single currency found support after a report showed that Germany’s Ifo business climate index rose to 104.7, up from 103.2 in October. Economists had forecast a decline to 103.0.
The data eased concerns over the outlook for growth in the euro zone’s largest economy.