US Jobless Claims rise

There were 262,000 new unemployment compensation claims made by Americans, an increase of 14,000. Despite touching the highest level since November, this is below market forecasts of 263,000. The news has caused the US Dollar to decline against all other currencies.

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EUR/USD below 0.98

The eurodollar fell under $0.98 for the first time in 20 years. This is just two days after Fed increased its interest rates by 75 bps and strengthened the dollar.

Swiss frank surprisingly declines

After the Swiss National Bank increased its rate by 75 basis points, the Swiss franc declined to 0.977 vs the US dollar. This event surprised those investors who were anticipating a stronger frank.  However, the action brought borrowing costs into the positive column for the first time since 2011.

Russia lowering interest rates

As expected, the Central Bank of Russia lowered its interest rates by 50bps to 7.5% during its September 2022 meeting. It was the sixth consecutive rate cut as current consumer price growth rates remain low. USD/RUB is up by 1.34% for the day.

GBP rises to 2-week high

On Monday, the British pound rose to $1.17, the highest level in two weeks. Following the passing of Queen Elizabeth, the Bank of England decided to postpone this week’s interest rate decision to September 22. According to the most recent figures, the UK’s GDP increased by 0.2%, somewhat less than the 0.4% predicted.

USD/JPY surges above 144

The Japanese yen dropped to its lowest level since August 1998, exceeding 144 versus the dollar. A growing difference in policy between the Federal Reserve and the Bank of Japan has contributed to this year-to-date devaluation, which is greater than 20%.

Australian economy continues to grow

The Australian economy expanded 0.9% in Q2 of 2022, compared with market forecasts of 1.0%, but it was the third straight quarter of growth. The growth is a little more compared to the 0.7% rise in Q1, and the result stopped the fall of the Australian dollar against the US dollar at 0.6700.

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Russia is about to legalize crypto

Russia took the first step toward legalizing crypto, and it benefits everyone. Kommersant reported that the country’s Deputy Finance Minister Alexei Moiseev and the Bank of Russia have settled on using cryptocurrency for cross-border payments. Locals are permitted to process international payments using crypto.

Bearish sentiment rules markets

Rate hikes from all central banks worldwide are pushing markets lower. In the last week, DAX 40 fell by 4%, S&P 500 by 6%, and Dow Jones by 5%. Commodities followed, with WTI Crude Oil down 8% and natural gas down 11% for the week.

Vitalik Buterin expects others to use PoS

All blockchains, including Dogecoin and Zcash, according to Ethereum co-founder Vitalik Buterin, should switch to proof of stake. Vitalik believes that now that the Ethereum merge is complete, other blockchains should follow.  “As proof of stake matures, I expect it to just increase in legitimacy more and more over time,” said Vitalik.

European stock indices tumble

The sell-off on major European markets continues on Friday as investors fear the tightening wave of monetary policy would harm global growth. After dropping below 400 points on Thursday for the first time since January 2021, the STOXX 600 is down approximately 0.7%. DAX 40 is down 0.8%, setting a new two-month low.

PMI falls in several countries

Eurozone Purchasing Managers’ Index (PMI) fell to 48.9 in September of 2022 from 49.8 in August, and Germany Services PMI also dropped to 45.4 from 47.7. UK Services PMI also falls from 50.9 to 49.2, but France surprises with a rebound from 51.2 to 53.

Lumber is down 70% in 6 months

The housing sector is witnessing a dramatic slowdown and rising rates. As a result, lumber futures fell by 7% to $450, a level last seen in September 2021 and down nearly 70% from their March peak. In addition, August saw the seventh straight month of existing house sales declines, reaching their lowest level since May 2020.

News

Did MIT invent a new type of cheap battery?

Have MIT engineers invented a replacement for the lithium-ion battery? These are used in conjunction with, for example, electric cars.

Honda has to cut production due to chip shortage

Honda has to cut production by 40% at one factory and 30% at another. This is primarily due to a shortage of chips.

Poland has enough gas and coal for the winter

Poland has secured supplies of natural gas and coal for the upcoming winter heating season. It managed to do so without Russian supplies.

Mercedes is making parts to stock up – afraid of gas

Mercedes-Benz is worried about possible gas rationing in the winter. It is therefore manufacturing parts for inventory.