The U.S. dollar edged higher against its Canadian counterpart on Monday, re-approaching a five-year peak as demand for the greenback remained broadly supported by the Federal Reserve’s most recent policy statement. USD/CAD hit 1.1641 during early U.S. trade, the pair’s highest since December 18; the pair subsequently consolidated at 1.1631, adding 0.23%. The pair was likely to find support at 1.1562, Friday’s low and resistance at 1.1676, the high of December 16 and a five-year high. Demand for the greenback remained broadly supported after the Fed signaled last week that it was on track to raise interest rates next year but said it was taking a patient stance. The central bank also acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment. Meanwhile, the Canadian dollar remained under pressure after data on Friday showed that Canada’s consumer price inflation fell 0.4% in November, confounding expectations for a 0.1% downtick, after a 0.1% rise in October. However, a separate report showed that Canadian retail sales were flat in October, beating expectations for a 0.2% fall, after an increase of 0.8% the previous month. Core retail sales, which exclude automobiles, rose 0.2% in October, compared to expectations for a 0.1% gain, after a flat reading in September. The loonie was lower against the euro, with EUR/CAD gaining 0.52%, to 1.4261. Later in the day, the U.S. was to release on existing home sales.