Investing.com - The U.S. dollar rose to three-week highs against its Canadian counterpart on Tuesday, after data showed that Canada's economy contracted in April and as investors remained cautious amid mounting fears over a Greek default.
USD/CAD hit 1.2453 during early U.S. trade, the pair's highest since June 9; the pair subsequently consolidated at 1.2445, gaining 0.31%.
The pair was likely to find support at 1.2302, Monday's low and resistance at 1.2470, the high of June 8.
Data on Tuesday showed that Canada gross domestic product fell 0.1% in April, compared to expectations for a 0.1% rise, after a 0.2% decline the previous month.
Meanwhile, the safe-haven greenback remained supported as Greece’s bailout program was due to expire on Tuesday and without a rescue package in place Athens would almost certainly fall into arrears on a loan repayment due to the International Monetary Fund.
A default by Greece would add to fears over the country’s solvency and fuel doubts over the condition of Greek banks and the collateral they use for European Central Bank loans.
Greece shut down its banking system on Monday, with lenders ordered to stay closed for six days, following a decision by the ECB not to extend a lifeline of emergency funding.
The loonie was fractionally lower against the euro, with EUR/CAD edging up 0.09% to 1.3945.
Earlier Tuesday, data showed that the euro zone's consumer price inflation rose by 0.2% this month, meeting forecasts and following an increase of 0.3% in May.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by 0.8% in June, in line with expectations and down from 0.9% in May.
A separate report showed that the euro zone’s unemployment rate stood at 11.1% in May, the lowest level since March 2012, unchanged from April and in line with expectations.