On Monday, the US dollar rose against the Canadian dollar, approaching again a six-year high as positive reports on revenues and expenditures of individuals in the US have increased optimism about the economy.
In early US trade, the pair USD/CAD reached 1.3379, its highest level since September 24; the pair subsequently consolidated at 1.3354, gaining 0.13%.
The pair is likely to receive support at 1.3229, the low of September 23 and resistance at 1.3417, the high of September 24, and six-year high.
According to the US Bureau of Economic Analysis, personal spending in the US rose in August by 0.4%, exceeding expected growth of 0.3%. Personal spending rose 0.4% in July, the figure being revised up from previously forecast by 0.3%.
The report also showed that personal income in the US increased last month by 0.3% compared to expectations of a gain of 0.4%. Personal income rose 0.5% in July, the figure being revised up from the previously expected increase by 0.4%.
These data increased demand for dollar after on last Thursday, Federal Reserve Chairman, Janet Yellen, said the US central bank still intends to start raising interest rates this year.
The comments convinced investors that the course of monetary policy is not significantly changed since the adoption of the Fed's decision to keep rates unchanged.
Meanwhile, the Canadian dollar came under pressure by oil prices. At the opening of the trading session in the US crude oil futures for November delivery fell 2.30% to $ 44.65.
The Canadian dollar rose against the euro; EUR/CAD dropped 0.17% to 1.4898.
Also on Monday, the pound strengthened against the US dollar, but the growth is likely to remain limited, as expectations of growth rates in the US in the coming months continue to provide considerable support to the US currency.
During European morning trade, the GBP/USD pair reached 1.5232, the session high, and subsequently consolidated at 1.5214, adding 0.23%.
The pair is likely to find support at 1.5132, Friday's low and also four-month low, and resistance at 1.5261, Friday's high.
The pound went also higher against the euro; EUR/GBP has weakened 0.31% to 0.7353.