An overall good morning thanks to policy expectations

The IMF has lowered the global growth outlook and the IEA says oil could see continued weakness from the introduction of Iran oil to the markets. None of this matter when there is a positive spin on Chinese GDP. GDP numbers in the country grew so slow that many analysts took it as a sign that stimulus will come to the aid. This has a reversal in everything that has been beaten up over the slowing China story. Oil and copper have spiked and indices around the globe are higher. This is all good news for a day or two as markets have plenty of short sellers that are looking to get out, however with the markets looking to stick the rally on policy changes, prepare for more volatility.

BOE governor Carney has just dampened hopes of an interest rate hike sooner rather than later, citing poor wage growth as the culprit. A weaker pound is expected to slow the downward pressures on the currency and this could keep the inflation rate from going lower. Wage growth as the focus of the BOE decisions has taken off some of the gains the Pound has seen to the Dollar this AM. With other factors looking to stabilize inflation in the area, could this be a good time to start looking at the Pound longer term against currencies such as the Yen and Euro? With more events such as the vote to remain in the EU. Policy uncertainty will surely discount the true value of the Pound for some time.