- BoE Gov Mark Carney gave his first appearance of the year and it was dovish as expected, citing the UK is not strong enough for a rate rise. "The world is weaker and UK growth has slowed". This will be another slap in the face for FED's monetary policy tightening, which has been marred by continued global growth concerns, falling commodity prices and worrying turbulence across global stock markets.
- Stocks continued to hold above their multi-month lows but lacked any conviction or direction as investors remain hesitant to commit at current levels.
- China GDP data seen during the Asian session had a mixed response from analysts, with some suggesting things aren’t too bad where as other remind us of the window dressing assumed to go along with the figures. Either way, sentiment remains subdued at best and borderline shell-shocked following two weeks of carnage across global stock markets.
- Brent meanders around the $30 a barrel and currently trades at $29.12. However it will take a convincing break higher before investors begin to assume the break below it was just a flirt with the 20's.
- AUDUSD finished on a positive note, which had a reprieve from lower oil prices and gloomy Chinese data. Trading around September lows and failing to break last week's (multi-year) low it has produced a Morning Star reversal formation on D1 to suggest pending strength.
Nylon Handover: Carney kills off hopes of a rate rise
A dovish tone was expected by Carney's first appearance this year but he wasted no time in spelling out the global and domestic environment's impact on rates this year.