Investing.com - The U.S. dollar rose against its Canadian counterpart on Monday, to trade near three-and-a-half month highs as Friday's comments by Federal Reserve Chair Janet Yellen continued to support the greenback.
USD/CAD hit 1.0973 during European afternoon trade, the session high; the pair subsequently consolidated at 1.0970, adding 0.23%.
The pair was likely to find support at 1.0928, Friday's low and short-term resistance at 1.0986, the high of August 21.
The greenback strengthened broadly after Fed Chair Janet Yellen said on Friday that the U.S. economy is recovering and added the labor market is improving as well.
Ms. Yellen was speaking at the Fed's annual meeting of top central bankers and economists in Jackson Hole, Wyoming.
The loonie was higher against the euro, with EUR/CAD slipping 0.13% to 1.4474.
In the euro zone, the German research institute Ifo said its Business Climate Index fell to a more than one-year low of 106.3 this month, below forecasts for 107.0 and down from a reading of 108.0 in July.
The weak data dampened optimism over the health of the euro zone’s largest economy.
The euro also came under pressure after European Central Bank President Mario Draghi told the Jackson Hole gathering on Friday that the central bank is ready to take more unconventional action if needed to stimulate a sluggish euro zone economy.
Later in the day, the U.S. was to release data on new home sales.