Greenback hits 1-week high vs loonie, as downbeat Canadian data weighs

The greenback climbed to one-week peak against its Canadian counterpart on Monday, as Greece's deal pressured market sentiment and as downbeat Canadian data weighed

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.

Market players were concerned over the conditions attached to Greece's bailout extension. The Greek government 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, easing worries that the country would face a liquidity crunch when its current bailout agreement expired at the end of the month.

The loonie also remained under pressure after weak domestic retail sales data on Friday seemed to increase the likelihood of another rate cut by the country’s central bank.

Earlier, Statistics Canada announced that retail sales dropped 2.0% in December, disappointing expectations for a 0.3% decline, after a 0.4% rise the previous month.

Core retail sales, which do not include automobiles, dipped by 2.3% in December, compared to expectations for a 0.7% fall, after an increase of 0.7% in November.

The loonie was higher against the euro, with EUR/CAD sliding 0.14% to 1.4248.

The U.S. is expected to issue a report on existing home sales.