Investing.com - The U.S. dollar dropped against its Canadian counterpart on Tuesday, pulling away from the previous session's six-week peak as demand for the greenback cooled amid broad profit-taking and as investors awaited the release of U.S. factory orders data later in the day.
USD/CAD hit 1.2490 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2454, sliding 0.53%.
The pair was likely to find support at 1.2405, the low of May 29 and resistance at 1.2604, the high of April 14.
The greenback lost some steam on Tuesday as investors locked in gains from the currency's recent rally due to a string of upbeat economic reports and expectations for a U.S. rate hike in the near future.
The loonie was lower against the euro, with EUR/CAD rallying 1.25% to 1.3856.
The single currency found support after data showed that euro zone consumer prices rose for the first time in six months in May.
The European Union’s statistics agency Eurostat said the euro zone consumer price index rose by 0.3% from a year earlier in May, following a flat reading in April. Economists had forecast an increase of 0.2%.
Underlying inflation, which excludes prices for energy, food and alcohol, also picked up. Annual core inflation rose 0.9% from a record low of 0.6% in April.
The euro’s gains were held in check however amid ongoing uncertainty over stalled negotiations on a cash-for-reforms deal for Greece.
Prime Minister Alexis Tsipras said Tuesday that Greece submitted a "comprehensive proposal" to its lenders late Monday and added that a decision on an agreement now rested on European political leaders.
Greece is due to make a €305 million payment to the International Monetary Fund on Friday but warned last month that it will be unable to make the repayment if a deal is not reached by then.