This week might start off on a challenging note due to ongoing uncertainties surrounding the US federal government shutdown, which is now in its third week. Additionally, a meeting is anticipated between US and Chinese leaders, Donald Trump and Xi Jinping, to address unresolved trade issues. The upcoming encounter in South Korea on October 30 has encouraged a rise in global equity markets.

Another key event this week was the release of the US consumer price index (CPI) inflation report, which came in slightly lower than forecasts, showing September CPI inflation at 3 percent, compared to an anticipated 3.1 percent, and core inflation at 3 percent, below the projected 3.1 percent. The month-over-month figures for both core and heading CPI were weaker than expected.

The essential takeaway is that while overall inflation has increased, core inflation has decreased. The CPI results during the shutdown were an unusual occurrence. In the foreign exchange markets, Japan’s newly elected pro-growth Prime Minister is advocating for increased spending that necessitates looser monetary policies, creating downward pressure on the Japanese Yen, which has fallen to a two-week low against the US dollar.

The Bank of Japan will make its interest rate........

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