USD/CAD headed toward highest close in a month

A stronger US dollar pushed USD/CAD to break above last week highs. Near the end of the session is trading above 1.2750, headed toward the highest daily close since July 11. 

US Dollar retreats from 2-week highs, stays positive on day

Data supports USD

The greenback is up across the board supported by strong US data released today that includes retail sales, the Empire State Manufacturing Index and the NAHB Housing Index, all showing better-than-expected numbers. 

US: Strong retail sales point to robust start to quarter - ING

US: Demand for new homes strengthens in August - Wells Fargo

USD/CAD peaked on Tuesday at 1.2777 and then pulled back, finding support above 1.2740. The retreat from the highs was also boosted by a recovery of crude oil, that erased losses.  The WTI barrel is practically flat, hovering around $47.50. 

The pair continues to move with a bullish bias as the correction of the greenback continues. Tomorrow the minutes of the latest FOMC meeting could have an impact on the US dollar. Regarding the Loonie, the key day of the week will be on Friday, with the Canadian CPI report.