The index that measures the performance of the dollar against a basket of currencies (Dollar Index) is trading at its lowest level since mid-August at levels of 92.66 this morning, Monday, August 30, the opening session of the week, amid quiet trading at the beginning of the week, after declines of more than 0.35% of the US dollar in the session The closing session for last week, Friday, coincided with the statements of US Federal Reserve Chairman Jerome Powell on the sidelines of the Jackson Hole Forum.

Powell’s statements, which the markets were waiting for with impatience, came below market expectations regarding the timing of starting to reduce asset purchases from the US Federal Reserve, which amount to 120 billion dollars per month, as expectations were focused on setting a specific timing for the process of starting to reduce purchases, especially after statements by members of the US Federal Reserve that preceded the forum ( Kaplan – Esther George – Bullard) unanimously agreed that the reduction process will take place soon, but with the rising market concerns about the Delta strain in the United States of America and the restrictions imposed by the major countries and their expected impact on global growth, which affected the progress of the Jackson Hole Forum after it was converted to A virtual webinar Jerome Powell preferred to ignore the talk about the timing of reducing asset purchases and to separate the process of reducing asset purchases and raising interest rates.

Powell indicated that the purpose of the next reduction in the asset purchase process is not to raise interest rates and that the Fed will continue to maintain the current low interest levels until the American economy reaches conditions compatible with the maximum employment and the stability of inflation rates at the bank’s target permanently.

During the sessions of this week, the markets are awaiting the data of the American labor market to find out more about the improvement of the American economy, amid expectations of adding the American economy by adding 750 thousand jobs in August after adding 943 thousand jobs in July, with expectations that the unemployment rate will decline to 5.2% in addition to the data of the ISM manufacturing index and any improvement The US indices this week may support the US dollar’s gains because it will accelerate the process of reducing asset purchases from the US Federal Reserve.

The reaction of the US dollar after the speech was negative, as the major currencies rose against the US dollar and gold, and in turn, the US indices rose in the closing session.