Investing.com - The U.S. dollar edged up against its Canadian counterpart on Monday, re-approaching a five-week high as demand for the greenback remained broadly supported by Friday's U.S. inflation data.
Trading volumes were expected to remain thin with markets in the U.K., Germany and the U.S. closed for holidays.
USD/CAD hit 1.2308 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2294, adding 0.12%.
The pair was likely to find support at 1.2173, the low of May 22 and resistance at 1.2329, the high of April 16.
The dollar strengthened broadly on Friday after data showed that U.S. core consumer prices rose 0.3% in April and were 1.8% higher on a year-over-year basis, the largest increase since October.
The greenback received an additional boost after Fed Chair Janet Yellen reiterated that the bank still expected to start raising interest rates later this year if the economy continued to improve as expected.
The loonie was higher against the euro, with EUR/CAD slipping 0.14% to 1.3504.
Sentiment on the single currency remained vulnerable as the prospect of a Greek default continued to weigh.
On Sunday Greece’s Interior Minister Nikos Voutsis warned that the country would be unable to make a €305 million payment to the International Monetary Fund due on June 5 if a cash-for-reforms deal with its international lenders is not reached by then.