S stocks between gains and losses, Europe ends off lows

US stocks between gains and losses, Europe ends off lows

Wall Street is in mixed territory with the Dow Jones down 17 points to 16,836 while the Nasdaq gains 13 points or 0.30% to 4,41.
Wall Street is in mixed territory with the Dow Jones down 17 points to 16,836 while the Nasdaq gains 13 points or 0.30% to 4,41. In Europe markets finished little changed. The FTSE 100 lost 0.20% while the Cac 40 declined 0.32%; on the positive side the Dax gained 0.18%. European stocks finished off their lows supported by US economic data.
Among currencies, the US dollar weakened across the board after Wall Street opening and is among the worst performers. The Loonie is falling in the market, pushed to the downside by GDP data from Canada.

Gold is falling marginally but has been able to move considerably off the lows and currently trades at $1,319/oz. Crude oil is also falling, almost 1%, and is back below $105 a barrel.
USD/CAD has modest upside potential - TD Securities
Shaun Osbourne, Chief FX Strategist at TD Securities notes the conditions surrounding USD/CAD from here and it’s potential for the upside.
Shaun Osbourne, Chief FX Strategist at TD Securities notes the conditions surrounding 

USD/CAD from here and it’s potential for the upside.

Key Quotes
"USD/CAD is opening the start of the week with a rare bid tone; since the early June high around 1.0950, funds has only managed to stage 3 days’ worth of net gains. Last week’s IMM data revealed that CAD positioning was much more neutral now, with net shorts reduced to little more than 5k—the smallest bet against the CAD since October last year."
"Recall that the markets have preferred a net short position in the CAD since late 2012 so unless investors are going to start getting net long CAD, the bulk of the sell-off in funds might have passed and we may have to be a bit more attentive to signs that USD/CAD is starting to steady or reverse—near to where we thought the market might find a bit more support, in the 1.0600/50 range. Motivation for extending the CAD recovery is difficult to imagine."
"We still rather think that the domestic economy is struggling to pick up momentum and that data may generally reflect unspectacular growth. Focus on today’s April GDP report is expected to show a gain of 0.2% which keeps the economy pushing towards a 2.0% growth rate for Q2 overall—not bad but nothing great and nothing that will pull the BoC off the sidelines any time soon."
"On the charts, early gains through minor trend resistance at 1.0671 suggest some modest upside potential for USD/CAD intraday; gains are likely to remain limited to the 1.0690/00 zone, however. USD strength through the 1.0715/50 range in needed to boost recovery prospects near-term"

NZD/USD year to date highs short lived

NZD/USD is trading at 0.8746, down -0.34% on the day, having posted a daily high at 0.8783 and low at 0.8741.
NZD/USD is trading at 0.8746, down -0.34% on the day, having posted a daily high at 0.8783 and low at 0.8741.

Falling away from this years highs, NZD/USD still retains the 0.87 handle and found demand on 0.8730’s at last Wed/Thursday resistance. Meanwhile, from an economic point of view, ANZ analyst explained that they believe GDP growth in New Zealand is peaking about now. That view was reinforced, they said, strongly with the release of ANZ’s business outlook which revealed a continued downtrend in business sentiment. “Not surprisingly, the agriculture sector is leading business expectations lower. It is this sector that is feeling most immediately the impact of falling commodity prices, which will eventually flow through to the terms of trade and impact the economy’s well-being more generally…We are expecting to see a further decline in June’s ANZ Commodity Price Index – in both world and NZD terms – and, given the recent increase in the NZD, a further decline in the return to domestic dairy producers even if the GDT auction price, on the day, shows signs of further stability”.

NZD/USD Levels
With spot trading at 0.8747, we can see next resistance ahead at 0.8753 (Yesterday's Low), 0.8755 (Daily Classic S1), 0.8768 (Hourly 20 EMA), 0.8775 (Daily Classic PP) and 0.8777 (Daily Open). Support below can be found at 0.8744 (Weekly Classic PP), 0.8741 (Daily Low), 0.8734 (Hourly 100 SMA), 0.8733 (Daily Classic S2) and 0.8717 (Hourly 200 SMA).
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