Investing.com - The U.S. dollar rose to one-week highs against its Canadian counterpart on Monday, as U.S. personal spending and income data added to optimism over the strength of the economy.
USD/CAD hit 1.2657 during early U.S. trade, the pair's highest since March 20; the pair subsequently consolidated at 1.2658, gaining 0.40%.
The pair was likely to find support at 1.2462, the low of March 27 and resistance at 1.2726, the high of March 20.
In a report, the U.S. Commerce Department said that personal spending inched up 0.1% last month, below expectations for a gain of 0.2%. Personal spending dropped 0.2% in January.
The report also showed personal income rose 0.4% in February, above forecasts for a 0.3% increase and after gaining 0.4% in January.
The dollar also remained supported after Federal Reserve Chair Janet Yellen said in a speech on Friday that a rate hike may be warranted later this year, but added that weakening inflation pressures could force the Fed to delay.
Ms. Yellen said policy tightening could "speed up, slow down, pause, or even reverse course" depending on how the economy is performing.
In Canada, data on Monday showed that raw materials prices rose 6.1% in February, beating expectations for a 5.1% increase. January's figure was revised to a 7.8% drop from a previously estimated 7.7% decline.
The loonie was steady against the euro, with EUR/CAD at 1.3719.
The euro shrugged off official data showing that German consumer price inflation accelerated at an annualized rate of 0.3% this month, meeting forecasts and compared to a reading of 0.1% in February.
Another report showed that consumer prices in Spain fell 0.7% this month, compared to expectations for a decline of 1.0%, after a 1.1% decline in February.
Meanwhile, Greece remained in focus after Prime Minister Alexis Tsipras’ government put forward new reform plans for approval late Friday, as part of a bailout extension review.
Officials from the European Union, the International Monetary Fund and the European Central Bank were to examine the measures after earlier proposals were not accepted.