The general index of the US dollar recorded gains by about 0.15%, trading at 96.10 levels in the middle of the trading session of the European session today, Thursday, the ninth of December, compensating a large part of its losses recorded yesterday, Wednesday, amid anticipation in the markets for inflation data that will be released tomorrow, Friday, with the absence of economic indicators affecting market movements since the beginning of the week.

Inflation is one of the most important data expected in the markets to form a better view of what will be discussed by the US Federal Reserve in its meeting next week, which is considered the last meeting of the Fed this year, as the markets are awaiting whether inflation will continue to rise or decline in November, although the consumer price index does not It is the preferred measure of the Fed and that the Fed prefers the PCE or Personal Consumption Expenditure Index, but the CPI gives a general reading and is considered the preferred by analysts.

The annual inflation is expected to exceed 6.5% levels in November and to record a growth of about 0.7% on a monthly basis after it rose to its highest level in thirty years at 6.2% on an annual basis in October and by 0.9% on a monthly basis and any numbers at or higher than Market expectations will confirm the market’s view that the US Federal Reserve may move sooner than expected.

Jerome Powell, in his testimony last week, indicated that it is now time to delete a word temporarily from inflation, and indicated that inflation continues to rise, and the Fed should consider the pace of reducing purchases next week, and hence the importance of inflation data that will be issued Friday at the end of the week.

With the decline in crude prices in November, it is not excluded that we will see a decline in monthly inflation, given that the energy index played a major role in the rises of crude in the last period, but with the rise in crude prices and compensating for more than 40% of the November losses so far, and the continuation of other factors affecting the rise in inflation From shortages in global supply chains and rising labor costs, the slowdown is expected to be temporary and therefore the movement of markets and the dollar will be based on the extent of the decline and slowdown.

It is expected that the main index, excluding food and energy prices, will not be affected by these declines, and therefore any declines, if they are not strong, will not change the opinion of the Federal Reserve, and their impact on the US dollar will be limited and temporary.

The markets started pricing strong inflation data even a day before the data was released, with the current US dollar rising, and it is expected to continue until tomorrow, moments before the statement was announced.