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Forex - Stronger greenback hits 1-week highs vs. loonie


 The U.S. dollar rose to one-week highs against its Canadian counterpart on Monday, as market sentiment remained under pressure after Greece reached a deal with its lenders to extend its bailout by four months.
USD/CAD hit 1.2624 during early U.S. trade, the pair's highest since February 12; the pair subsequently consolidated at 1.2582, advancing 0.42%.
The pair was likely to find support at 1.2417, Friday's low and resistance at 1.2699, the high of February 11.
Investors remained cautious amid concerns over the conditions attached to Greece's bailout extension. Athens was to submit a list of reforms to be approved by the country’s creditors in order to secure the extension later Monday.
On Friday, the euro zone approved the extension of Greece’s €240 billion bailout, removing concerns that the country would face a liquidity crunch when its current bailout agreement expired at the end of the month.
The Canadian dollar also remained under pressure after weak domestic retail sales data on Friday was seen as increasing the likelihood of another rate cut by the country’s central bank.
Statistics Canada reported that retail sales dropped 2.0% in December, disappointing expectations for a 0.3% slip, after a 0.4% rise the previous month.
Core retail sales, wich exclude automobiles, declined by 2.3% in December, compared to expectations for a 0.7% fall, after an increase of 0.7% in November.
Elsewhere, the loonie was higher against the euro, with EUR/CAD slipping 0.14% to 1.4248.
Later in the day, the U.S. was to publish a report on existing home sales.

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