The US: Temporary agreement in place
After the 16-day shutdown of some areas of the US government, the Republicans and the Democrats have agreed to postpone the debt ceiling problems and the budget negotiations by about 3 months.
The FX market: What next?
A debt ceiling agreement is in place. Just like any good thriller, we had to wait almost until the very last minute to see the outcome. And what now – are we going to live happily ever after?
Our general view is that there is reason for optimism. The global economy is improving.
The Fed’s scaling down of QE has been postponed, and the ECB is waiting in the wings with another LTRO or interest rate cut. Positioning data indicate that the selective investor may be in for decent gains.
Read full report: FX Research
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