News & Economic Updates:

• The EIA reported on Wednesday that U.S. oil inventories fell by 3.3M bbl in the previous week, below analysts forecast of -400K bbl
• ECB’s Villeroy de Galhau said that a “significant” rate hike is needed in September and a return to neutral (around 1% – 2%) by the end of the year.
• Fed’s Mester sees benchmark rate above 4% and no cuts at least through 2023
• On Wednesday, China’s Shenzhen enters new four-day lockdown over COVID-19 outbreak
• China August Manufacturing PMI 49.4 (exp 49.2) & Non-manufacturing 52.6 (exp 52.2)
• China Markit Manufacturing PMI falls into contractionary conditions: 49.5 in August vs. 50.2 forecast
• On Friday, the U.S. called Iran’s latest response to the nuclear negotiations a non-encouraging and a step backwards
• U.S. Non-Farm Payrolls came in just above expectations, unemployment rate ticked higher to 3.7% in August as more return to the workforce
• J.P.Morgan Global manufacturing PMI fell to 50.3 in August (a 26-month low) vs. 51.1 in July; Price growth slowed while employment remained stable.
• S&P Home Prices Index rose by 18% y/y in June vs. 19.9% in May
• U.S. consumer confidence index jumped to 103.2 in August vs. 95.3 July
• Federal Reserve Bank of New York President Williams pushed back on market expectations of a rate cut next year
• Chicago PMI for August: 52.2 from 52.1 in July
• ADP payrolls report showed that employment grew by 132K in August vs. +268K in July
• U.S. jobless claims totaled a seasonally adjusted 232K for the week ended Aug. 27 vs. 250K forecast and 237K previous
• Federal Reserve Bank of Dallas President Lorie Logan say number one priority is price stability
• U.S. Challenger job cuts fell 21% m/m in August, but up 30% y/y
• ISM Manufacturing PMI for August: 52.8 vs. 52.8 in July; New orders Index: +3.3 to 51.3; Prices Index: -7.5 to 52.5; Employment Index: +4.3 to 54.2
• The U.S. added a net 315K (vs. 526K previous) jobs and unemployment rate ticks higher to 3.7% as more workers join labor force
• U.S. Factory orders fell by -1.0% to $548B in July
• The Bank of England said UK credit card debt grew by 13% m/m, the highest rate since 2005. Mortgage interest rates jump to the highest level since 2015
• U.K. Mortgage Approvals in July increased to 63.7K vs. 63.1K in June, both below the pre-pandemic average of 66.8K
• U.K. Manufacturing PMI for August: 47.3 vs. 52.1 in July, new orders and business indexes contracting sharply
• U.K. house prices rose by +0.8% in August vs. +0.2% in July – Nationwide
• Governing Council member Martins Kazaks said that the ECB needs a ‘resolute’ hike of at least 50 bps
• ECB Governing Council member Olli Rehn said that that it’s important to continue a consistent and orderly normalization of monetary policy
• The European Union is ahead of schedule as it nears its goal to fill up to 80% of its gas storage reserves by November.
• Euro Area Flash CPI: +9.1% y/y in August vs. +8.9% previous
• Swiss KOF economic barometer dropped from 90.5 to 86.5 in August, below 88.3 consensus
• procure.ch Swiss PMI for August: 56.4 vs. 58.0 in July
• Swiss retail sales in July: +2.6% y/y vs. a downwardly revised +0.7% y/y in June 2022
• Canada’s current account surplus Q2 2022: $2.7B surplus, below $6.9B forecast
• Canada GDP for Q2 2022: +3.3% y/y vs. 4.0% BOC expectations & 4.4% market forecasts
• Canada building permits in July: -6.6% m/m vs. -0.6% m/m in June; lead by a fall of -8.6% in the residential sector
• Canada’s manufacturing PMI dropped to 52.5 to 48.7 vs. 53.6 expected in August
• Canadian labor productivity rose by 0.2% q/q in Q2 2022, the first rise in seven quarters
• Bank of Japan Kuroda re-iterated that high prices are caused by commodities and will be transitory, needs to maintain easy monetary policy
• Japanese unemployment rate unchanged at 2.6% as expected
• Japanese consumer confidence improves from 30.2 to 32.5 in August
• Japan Housing Starts: -5.4% y/y in July vs. -2.2% y/y previous

Source: forexfactory.com