<ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/umich-september-us-prelim-consumer-sentiment-595-vs-600-expected-20220916/“>UMich September US prelim consumer sentiment 59.5 vs 60.0 expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/putin-says-main-goal-is-to-liberate-donbas-region-and-we-are-not-in-a-hurry-20220916/“>Putin says main goal is to liberate Donbas region and ‚we are not in a hurry'</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/cnn-chinas-xi-has-told-military-wants-china-to-have-capability-to-take-taiwan-by-2027-20220916/“>CNN: China’s Xi has told military he wants China to have capability to take Taiwan by 2027</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-planning-to-cut-business-energy-rates-in-half-20220916/“>UK planning to cut business energy rates in half</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/the-bakers-hughes-oil-rigs-move-up-8-in-the-current-week-20220916/“>The Bakers Hughes oil rigs move up 8 in the current week</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/canadian-july-wholesale-trade-06-vs-06-expected-20220916/“>Canadian July wholesale trade -0.6% vs -0.6% expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/saudi-arabia-and-russia-see-100-as-a-fair-price-for-oil-report-20220916/“>Saudi Arabia and Russia see $100 as a fair price for oil – report</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/canada-august-housing-starts-2674k-vs-2650k-expected-20220916/“>Canada August housing starts 267.4K vs 265.0K expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-core-cpi-final-mom-aug-act-07-prev-02-fcst-06-20220916/“>Eurozone Core CPI Final MoM (Aug) Act: 0.7% Prev: 0.2% Fcst: 0.6%</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-retail-sales-uk-retail-sales-mom-aug-act-16-prev-03-fcst-05-20220916/“>U.K. Retail Sales U.K. Retail Sales MoM (Aug) Act: -1.6% Prev: 0.3% Fcst: -0.5%</a></li></ul><p>Markets:</p><ul><li>WTI crude oil up $0.21 to $85.30</li><li>US 10-year yields down 1 bps to 3.45%</li><li>Gold up $10 to $1673</li><li>S&P 500 down 28 points to 3873, or 0.7% — down 4.8% on the week</li><li>NZD leads, GBP lags</li></ul><p>It could have been worse.</p><p>The FedEx warning late yesterday boosted the dollar and weighed heavily on equity futures. In the end, the decline in the S&P 500 was only about half of the worst levels. The commodity currencies in particular showed some late life and that ensured AUD/USD closed above some critical levels after touching a two-year low in early European trade.</p><p>The euro caught a bid into the London fix. It later gave about half of that move back but ultimately finished 10 pips higher with some late-day bids on improving equities.</p><p>The simmering catalyst was a dip in inflation expectations in the UMich survey. Both 1 year and 5-10 year inflation moved lower month-to-month and led to a small bid in bonds. It also led to a drift lower in 100 bps Fed hike odds from 25% to 17%.</p><p>Cable ended the day as the worst peformer but it made up some ground in US trade as it rose to 1.1423 from a low of 1.1351. The catalyst was a soft retail sales report. Late in the day we also learned the businesses will be getting their power bills cut in half. The question is: Was the market expecting more help on energy?</p><p>USD/JPY remains a focus with the threat of intervention looming. The pair formed something of a double top at 143.75 today and drifted lower to finish near the lows at 142.94. That’s still a gain on the week but the 145.00 level is looking like a tough one to crack and that’s five straight weeks of gains.</p><p>Have a wonderful weekend. Next week is Fed week.</p>

This article was written by Adam Button at forexlive.com.