Investing.com - The dollar rose to one-month highs against the Canadian dollar on Tuesday as investors positioned ahead of a series of key economic indicators later in the week.
USD/CAD touched highs of 1.0827, the most since June 19 and was last up 0.16% to 1.0816.
The pair was likely to find support at 1.0737, Friday’s low and resistance at the 1.0850 level.
Demand for the dollar continued to be underpinned ahead of preliminary data on U.S. second-quarter growth and the Federal Reserve’s latest rate statement, both due on Wednesday. Investors were also awaiting the July employment report on Friday.
Earlier this month Fed Chair Janet Yellen said that rates could rise sooner if the recovery in the labor market continued.
Canada was to release the May report on gross domestic product on Thursday.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.16% to 81.24, the highest since early June.
Elsewhere, the loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD at 1.4508, holding above last Wednesday’s five month lows of 1.4416.
The single currency remained under pressure amid concerns over the divergence in monetary policy between the European Central Bank and its major peers.
The euro zone was to release what would be closely watched data on consumer prices on Thursday, amid concerns over persistently low levels of inflation in the currency bloc.