The US Government shutdown looks to be coming to an end, with votes underway in the Senate confirming the necessary amount of Democratic Party dissidents, will re-open the Government. Federal Reserve Board member Miran, was out and about talking a 50 b.p. cut for December, which also boosted markets. The US Dollar was steady, with the EUR trading around 1.1550, while the GBP recovered 1.3180.Chinese inflation was higher than expected, rising to an annualised 0.2%, while PPI was deeply negative. There is certainly no inflation worries there. The same cannot be said for Japan, with the latest Bank of Japan minutes talking of rate rises by year end, jacking up Japanese bond yields. Commodity currencies stabilised, with the AUD regaining 0.6500, while the NZD consolidates above 0.5600.
