Investing.com - The U.S. dollar rose against its Canadian counterpart on Monday, as concerns over a possible Greek default weighed broadly on riskier assets, while disappointing data from Canada also dented demand for the local currency.
USD/CAD hit 1.2393 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2390, climbing 0.56%.
The pair was likely to find support at 1.2273, the low of June 24 and resistance at 1.2423, the high of June 24.
Market sentiment was hit after the Greek government ordered an emergency bank shutdown on Sunday night and the central bank moved to impose capital controls as the banking system neared insolvency after deposit outflows accelerated over the weekend.
Hours earlier the European Central Bank said it would continue providing emergency liquidity assistance to Greece’s banks, but capped emergency funding at current levels.
Greece broke off negotiations with creditors on Saturday and in a surprise move Prime Minister Alexis Tsipras called for a referendum to be held on July 5 on whether to accept the terms proposed by lenders for extending the country’s bailout.
European finance ministers refused a request from the Greek government to extend the bailout program, set to end on Tuesday, until after the referendum.
Athens is due to repay €1.6 billion to the International Monetary Fund on Tuesday but without a rescue package in place will almost certainly default.
In Canada, data on Monday showed that raw materials prices rose 4.4% in May, compared to expectations for an increase of 4.5%. The change in materials prices in April was revised to a 4.0% gain from a previously estimated 3.8% rise.
The loonie was lower against the euro, with EUR/CAD adding 0.11% to 1.3772.
The euro regained some strength after Swiss National Bank Chairman Thomas Jordan said Monday the bank had intervened "in order to stabilize the markets," which were thrown into turmoil after Greece announced an emergency bank shutdown.