US Dollar
1. The US Dollar Index (DXY) briefly broke through the 100 mark, the first time since August 1st.
2. The US government shutdown entered its 35th day, tying the longest in history.
3. Federal Reserve - Milan: Policy is too tight. The Fed may reach the neutral rate through a series of 50-basis-point rate cuts, but does not need a 75-basis-point cut. Goolsby: Inflation data remains worrying, and the threshold for rate cuts has risen.
Cook: A rate cut is possible in December, but it will depend on subsequent information. Daly: Open to a December (rate decision).
Euro
1. European Central Bank - Simkus: Inflation is only slightly off target. Kazmir: The ECB must be wary of upside risks to inflation and resist the temptation to fine-tune policy. Kohl
It is unclear how interest rates will change next; the best policy is to wait and see.
Other
1. The Reserve Bank of Australia kept its benchmark interest rate unchanged at 3.6% and raised its inflation forecast. 1. Reserve Bank of Australia Governor Bullock: Whether there will be further rate cuts remains uncertain. Current policy is in the right place.
2. Japanese Finance Minister Satsuki Katayama issued another strong verbal warning regarding exchange rate movements.
3. Indonesian Central Bank Governor: There is still room for further rate cuts.
4. Reuters poll: The Polish central bank is expected to cut its main interest rate by 25 basis points to 4.25% on Wednesday.
5. The Indian rupee has moved away from near-historic lows, raising suspicions of intervention by the Reserve Bank of India.
