USDCAD Overnight Range 1.2640-1.2708        

The first quarter of 2015 is now history but not the FX market uncertainty.This morning’s ADP employment report missed the forecasts and the US dollar retreated on a lowering of expectations for Friday’s nonfarm payrolls release.

The Asian session was fairly active. AUD/USD and NZDUSD got a lift on higher China PMI data while USDJPY slipped on a weaker Nikkei. USDJPY recouped all its losses and then some after a remark by a politician and a former MoF official calling for the BoJ to ease further on April 30.

The soft dollar story in Asia turned to a strong dollar story in Europe. EURUSD gave up gains in Asia while ignoring better PMI’s across the Euro area.The Iran/West talks in Switzerland are still going strong and Oil is heavy. GBPUSD lost ground despite better than expected data.

FX trading is likely to remain range-bound ahead of the long weekend starting Friday.Today’s US ISM manufacturing PMI (Forecast 52.5) will likely have a muted effect if it is as expected but add to US selling pressures if it is below forecasts

 USDCAD Technical Outlook

The intraday USDCAD technicals are bullish while trading above 1.2640,which is being tested now. A break below this level opens up further losses to 1.2610 and then 1.2570. Only a move above 1.2690 would negate the downward pressure, suggesting further 1.2640-1.2750 range trading.

Today’s Range 1.2610-1.2710