Investing.com - The U.S. dollar erased losses against its Canadian counterpart on Wednesday, as data showing that the U.S. economy contracted less than initially expected in the last quarter lent support to the greenback.
USD/CAD eased off 1.2277, the pair's lowest since June 22, to hit 1.2372 during early U.S. trade, rising 0.37%.
The pair ws likely to find support at 1.2215, the low of June 22 and resistance at 1.2386, the high of June 23.
The Commerce Department reported on Wednesday that gross domestic product contracted at a rate of 0.2% in the three months ending March 31, in line with expectations and compared to a previous estimate of a 0.7% contraction.
The upbeat data added to speculation that the Federal Reserve could raise interest rates as soon as in September.
The safe-haven U.S. dollar also found support amid ongoing uncertainty over the outcome of Greek debt negotiations.
According to a Greek government official, Prime Minister Alexis Tsipras told associates on Wednesday that some of Greece's latest proposed reform measures had not been accepted by creditors.
The remarks came as Tsipras was heading for Brussels to meet with the heads of the European Commission, the European Central Bank and the International Monetary Fund.
Earlier Wednesday, Greece's economy minister, George Stathakis, said "two or three" areas still needed to be addressed, but added that he was confident a deal would be reached by the time EU leaders meet on Thursday.
Greece has to repay € 1.6 billion to the IMF on June 30 or face going into default, which could trigger the country’s exit from the euro area.
The loonie was lower against the euro, with EUR/CAD gaining 0.46% to 1.3831.
The single currency shrugged off data earlier Wednesday showing that German business confidence fell to a four-month low in June, dampening optimism over the health of the euro zone’s largest economy.
In a report, the German research institute, Ifo said its Business Climate Index fell to 107.4 this month, down from a reading of 108.5 in May and missing forecasts for 108.1.