Overvaluation stories continue to plague equity markets, with a controlled and restrained beginning to the weeks trade. The volatility from last week is set to continue and may infect the wider markets. The US Dollar was steady, as speculation on the December rate cut, from the Fed, picks up momentum. The EUR traded around 1.1600, while the GBP hit 1.3150, buffeted by political speculation that a coup against the PM is underway.Commodity currencies went backwards to open the weeks trade, with the AUD testing the downside 0f 0.6500, while the NZD drifted back towards 0.5650. Japan/China tensions spiked after a Chinese travel warning over Japan. Japanese GDP contracted sharply in Q3, resulting in economic contraction of 1.8%, which will ensure no more rate rises from the BoJ.
