USDCAD hit 1.2778 during early U.S. trade
The U.S. dollar rose to fresh one-month highs against its Canadian counterpart on Tuesday, after the release of strong U.S. data, while lower oil prices weighed on demand for the commodity-related Canadian currency.
The greenback extended earlier gains after data showed that U.S. retail sales rose at a faster than expected rate in July, brightening the outlook for economic growth in the third quarter.
A separate report showed that the Empire State manufacturing index climbed to 25.20 in August from 9.80 the previous month, blowing past expectations for a reading of 10.00. It was the highest level since September 2014.
The U.S. dollar also remained supported after New York Federal Reserve President William Dudley said on Monday that he favored another interest rate hike this year if the economic conditions evolved in line with his expectations.
Meanwhile, sentiment on the Canadian dollar remained vulnerable as U.S crude prces were hovering at three-week lows on Tuesday, amid ongoing concerns over a global supply glut.
The single currency came under pressure after data earlier showed that German gross domestic product rose 0.6% in the second quarter, disappointing expectations for an increase of 0.7%.
Year-over-year, Germany’s economy grew 0.8% in the last quarter, less than the expected growth rate of 1.9%.