The world continues to wait the outcome of the stand-off in the US but positive noises coming out of Washington over night point towards a deal finally being reached on the government’s debt ceiling.
As the US deal appeared closer markets in Asia rallied and the Yen fell off against its peers as it is no longer seen as a stop-gap safe haven while the uncertainty continued.
The Aussie dollar rallied for the second week in response to a resurgence in orders from China, their biggest export partner. The Kiwi dollar also gained but on the back of continued high inflation in the country.
Other market news
On the back of the IMF raising the UK growth forecast from 0.9% to 1.4% they have cut the growth for the world economy from 3.2% to 2.9% on the back on further signs of weakness from the emerging markets.
Elsewhere China has overtaken the US as the world’s largest importer of oil at 6.3m per day due to the rising manufacturing and the country’s increase of car ownership.
