The US senate failed to pass a spending bill by Thursday and consequently the US is once again suffering a government official shut down as the legislative gridlock continues. Some government agencies are expected to run out of money. However the shut down may not last long with senate, and later the House, expected to pass a funding agreement on Friday.

Volatility on equity markets continued as major US equity indices registered significant losses at yesterday’s US close. The major concern is about higher interest rates and the Fed’s stance with monetary policy.

The US Dollar has been close to flat throughout yesterday’s session after a week of gains. The US Dollar index is currently at 90.27.

Cable currently stands at 1.3932 after Thursday’s spike to 1.4063 after the BoE said it was likely to hik rates more than originally expected and also sooner than had been expected as well.

Later today we are expecting data for UK Industrial & Manufacturing Production, Canadian Unemployment Rate and US Wholsale inventories amongst others.