Investing.com - The U.S. dollar trimmed gains against its Canadian counterpart on Tuesday, pulling away from a one-month high but the greenback remained supported by growing expectations for a U.S. rate hike.
USD/CAD pulled away from 1.2683, the pair's highest since February 11, to hit 1.2638 during early U.S. trade, still up 0.25%.
The pair was likely to find support at 1.2453, the low of March 6 and resistance at 1.2699, the high of February 11.
The greenback remained broadly supported after the latest U.S. jobs report heigthened expectations for higher interest rates.
The Fed is expected to begin raising interest rates around the middle of this year and investors were looking ahead to next week’s policy statement to see if it would drop its reference to being patient before raising rates.
The loonie was higher against the euro, with EUR/CAD declining 0.69% to 1.3584.
Sentiment on the single currency was vulnerable after European Central Bank President Mario Draghi told Greek officials at a meeting on Monday that they must let euro-area representatives return to Athens and examine the government's books in order to obtain more aid.
Greece reportedly agreed to allow experts representing the European Commission, ECB and International Monetary Fund to start work in Athens on Wednesday.