The Global Markets: Year To Date

While it is still early days within 2014 we will take a quick glance at how markets have been performing (or under-performing...)

METALS:
There is a disparity amongst the metals as Platinum, Gold and Silver are leading the way and rejected their December lows, while Copper has gone the other way and sold off from the December highs. Copper is considered to be a bellwether to the economy and has a closer relationship with Indices which has also retreated from their highs.

OIL:
Of the markets we track WTI and Brent have been the biggest moves this year so far and firmly at the bottom of the board. Not surprisingly Canadian Dollar is also down as they are a major exporter of Oil, and has seen a bad week of numbers, with the Ivey PMI back into 'Industry Contraction' levels.

INDICIES:
With the majority of equities (across US Europe and Asia) finishing the year at their highs it is not too surprising to see them retreat steadily as we wait for the real liquidity to return. The DAX had the worst opening day and produced a Bearish Engulfing candle but that said, all seem to be trading within perfectly acceptable correction patterns and relatively narrow ranges. All US Equities remain in technical uptrends with Europe following suit, with the exception of FTSE which seems to be within a larger degree complex correction (faltering around the 2007 highs...). Nikkei is teetering on the edge of a primary trendline and holding above support but this could go either way.. Use USDJPY as your guide if you trade this pair due to the stronger correction.

FOREX:
The Kiwi Dollar has been the strongest currency so far this year after talk of increased interest rates. This week NZD broke to 12 months highs against CAD, CHF, JPY and (briefly) GBP.

AUD has been a mixed bag but is managing to defend lows against the USD and even the NZD which is a testament to itself considering Kiwi has by far been the strongest single currency amongst the majors.

EUR is currently at 12 month lows against GBP but holding firm against USD. 1.365 remains to be a key level to watch and is a fine line between bullish and bearish.

USD has been at record highs against the dwindling Canadian Dollar with increasing bullish momentum and hovering around the 5yr highs against the Yen. We suspect a bullish break out of a Bullish Wedge against Swissy to suggest further gains in the coming weeks.

The market is eagerly awaiting today's NFP before committing further...

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