Investing.com - The U.S. dollar was hovering at one-month lows against its Canadian counterpart on Monday, even as news a major U.S. tax reform vote lent support to the greenback as Friday's strong Canadian employment data continued to boost the local currency.
USD/CAD was little changed at 1.2684 by 09:30 a.m. ET (13:30 GMT), just off a one-month low of 1.2656 hit earlier in the day.
The greenback found support after the U.S. Senate approved a tax overhaul late Friday, marking President Donald Trump first major political victory.
The Trump administration has said its tax cuts will generate growth and spark inflation, which investors hope will prompt a faster pace of monetary tightening by the Federal Reserve.
However, fresh political turmoil in the U.S. was expected to weigh after former national security adviser Michael Flynn said he is prepared to cooperate in the special counsel probe into alleged links between the Trump campaign and Russia during last year’s election.
Flynn pleaded guilty Friday morning to lying to the Federal Bureau of Investigation about his communications with the Russian ambassador to the U.S. in December 2016.
The Canadian dollar remained underpinned by data on Friday showing that the country's gross domestic product expanded by 0.2% in September, compared to expectations for 0.1%.
The loonie was higher against the euro, with EUR/CAD down 0.47% at 1.5021.
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