Investing.com - The U.S. dollar was steady near six-week highs against its Canadian counterpart on Tuesday, as hopes for a June rate hike by the Federal Reserve continued to support the greenback and as declining oil prices dampened demand for the commodity-related Canadian currency.
USD/CAD hit 1.3188 during early U.S. trade, the pair’s highest since April 5; the pair subsequently consolidated at 1.3149.
The pair was likely to find support at 1.3006, the low of May 19 and resistance at 1.3219, the high of April 5.
The greenback remained broadly supported after St. Louis Fed President James Bullard said Monday that more factors favored a gradual rate increase versus keeping them steady.
Separately, San Francisco Fed President John Williams said he still sees the central bank raising interest rates two to three times this year.
A slump in oil prices earlier Tuesday weighed on the Canadian dollar amid fresh concerns over a global supply glut and as traders awaited the weekly U.S. inventory data by the American Petroleum Institute.
The loonie was higher against the euro, with EUR/CAD declining 0.54% to 1.4668.
The single currency weakened after the ZEW Centre for Economic Research said its index of German economic sentiment declined to 6.4 this month from April’s reading of 11.2. Analysts had expected the index to rise to 12.0 in May.
The index of euro zone economic sentiment dropped to 16.8 in May from 21.5 a month earlier, missing forecasts for 23.4.