News and Economic Update:

• President Zelensky says Ukraine retook 6K sqm from Russian control this month
• U.S. Consumer prices rose in August and the annual growth rate slowed less than expected
• U.K. headline consumer inflation slowed in August to 9.9% y/y but still remains way hot; core CPI ticked higher to 6.3% y/y
• ZEW economic sentiment in Europe weakened to -60.7 vs. -54.9 previous
• Australia’s unemployment rate ticked higher to 3.5% and net jobs gain came in below expectations as 33.5K
• EIA crude oil inventories rose by 2.4M barrels
• The German government took temporary control of two subsidiaries of the Russian energy giant Rosneft on Friday
• FedEx Corp. sees business conditions deteriorating, and possibly will get worse, fueling global recession bets further ahead of the weekend.
• Russian President Vladimir Putin pledged to up attacks on Ukraine’s civilian infrastructure, and pledging to continue military operation despite recent setbacks.
• In August, the U.S. consumer price index rose by 0.1% m/m . The inflation gauge increased 0.6% when food and energy were excluded, which is higher than anticipated.
• U.S. budget deficit widens to $220B in August, up by 29% from the same month last year
• Homebuyers’ demand for U.S. mortgages declined 29% since last year as interest rates rise above 6%.
• U.S. industrial production contracts by 0.2% (vs. 0.2% uptick expected) on lower utilities output
• UK July GDP up by 0.2% vs. 0.3% expected, -0.6% in June
• UK’s industrial production dips by 0.3% vs. 0.4% expected, -0.9% in June
• UK manufacturing production improves by 0.1% vs. 0.3% expected, -1.6% previous
• GDP grew in July by +0.2% q/q but the outlook remains one of recession – NIESR
• The seasonally adjusted Italian industrial production index rose 0.4% m/m in July 2022. The recent three months’ average dropped 1.6% from the prior three.
• According to Bundesbank President Joachim Nagel, the European Central Bank would have to keep raising interest rates if the current trend in consumer prices continues.
• ZEW’s economic sentiment index for Germany declined to -61.9 from -55.3 in August. Reuters economists predicted -60.0 for September.
• Swiss producer prices dip by another 0.1% vs. estimated 0.1% uptick
• Canadian manufacturing sales declined 0.9% to $71.6B in July, mainly driven by the primary metal, petroleum and coal, and furniture and associated products industries.
• Canada Housing Starts for August: -3% m/m to 267,443 units
• NZ current account deficit narrows from 6.5B NZD to 5.22B NZD in Q2 2022
• Australian Westpac consumer sentiment index rebounded by 3.9% m/m vs. -3% m/m previous
• AU new home sales down by another 1.6% in August after 13.1% slide in July
• Australia’s MI inflation expectations slowed from 5.9% to 5.4%
• Australia added 33.5K jobs in August vs. estimated 35.5K gain
• Japan’s core machinery orders surprisingly gain by 5.3% vs. 0.6% decline expected in July

Source: forexfactory.com