Investing.com - The U.S. dollar rose to fresh three-month highs against its Canadian counterpart on Tuesday, as the greenback remained broadly supported by concerns over a potential Greek exit from the euro zone and as downbeat Canadian data dampened demand for the local currency.
USD/CAD hit 1.2758 during early U.S. trade, the pair's highest since March 31; the pair subsequently consolidated at 1.2752, advancing 0.79%.
The pair was likely to find support at 1.2562, Monday's low and resistance at 1.2706, the high of March 30.
Investors remained cautious as Greek Prime Minister Alexis Tsipras was to present new proposals to euro zone finance ministers later in the day, ahead of a meeting of European officials to discuss the aftermath of Sunday’s referendum in Greece.
Greek banks were set to remain closed on Tuesday after capital controls were extended until Wednesday, amid concerns that lenders are close to running out of cash. Banks have been shuttered since last Monday, with ATM withdrawals limited to €60 per day.
The European Central Bank announced Monday that it would keep its emergency liquidity assistance to Greece unchanged at levels announced last Monday.
The ECB also said it will adjust the haircuts on collateral accepted by the Bank of Greece as part of the ELA, adding to pressure on Athens.
In the U.S., the Bureau of Economic Analysis reported on Tuesday that the U.S. trade deficit rose to $41.87 billion in May from $40.7 billion in April, whose figure was revised from a previously reported deficit of $40.88 billion.
Analysts had expected the U.S. trade deficit to widen to $42.6 billion in May.
At the same time, data showed that Canada's trade deficit widened to C$3.34 billion in May from C$2.99 billion in April, whose figure was revised from a previously estimated deficit of C$2.97 billion.
Analysts had expected the trade deficit to narrow to C$2.50 billion in May.
The loonie was higher against the euro, with EUR/CAD shedding 0.20% to 1.3954.