We have played that spells like that overrides the current movement rules. For example, we play with the alternative movement rules in the Dungeon (which we also incorperated into the Highlands), where you only can go down towards the Treasure chamber, unless you chose to turn back.
So if Misdirection would be cast in our Dungeonplays we would treat the Misdirection spell as normal, the caster decides in which direction you move, but if he moves you backwards it is not treated as if you where turning back and on the next turn you can move as normal.
I would do the same in the City.
In the Inner Region, or in the Dungeon with Fight or Flight alternative rule, there's the option to turn back or flee the Dungeon. The FAQ explains what happens if Misdirection is played in these cases.
In the City moving counter-clockwise is not an option: it is forbidden. Moving counter-clockwise in the City is a good thing, especially in the shop area, as you can re-enter shops. If Misdirection may do this, I wish it to be clarified, if possible.
As I see it, Misdirection in the City is quite useless. You can force a character to enter a shop he doesn't want to visit, but you can't shape the movement between spaces, you only get to choose the direction towards which the movement begins.