The general index of the US dollar is trading at its lowest level in six months, in the middle of the European session’s trading today, Wednesday, December 14th, at 103.72 levels, down by about 0.25%, after losing more than 1% at the close of trading session yesterday, Tuesday, after the US inflation figures for November were announced.

Which came below market expectations and supported the idea of the US Federal Reserve slowing down the pace of monetary tightening.

A declining reading of inflation to levels of 7.1% from peak levels at 9.1%, a decline for the fifth month in a row, which largely reflects the US Federal Reserve’s success in curbing inflation after a strong series of interest rate hikes, the latest of which was four hikes of 75 basis points in a row.

Inflation The US Federal Reserve will start slowing the pace of monetary tightening at its meeting today, the last meeting of 2022.

Futures market expectations, according to CME’s Fed Watch tool, indicate that the rate of the US Federal Reserve’s rate hike by 50 basis points at today’s meeting, to 4.5%, reached 80%.

The markets will also monitor the quarterly expectations of the US Federal Reserve regarding growth and inflation for the coming period, and the points scheme for raising interest rates, and whether expectations indicate more slowdowns in the pace of monetary tightening or not.

The US dollar was ahead of the US Federal Reserve and the interest rate hike by 50 basis points. Therefore, the dollar’s movements will be based on the economic expectations of the Fed’s members for the coming period.

On the other hand, the Consumer Price Index (CPI), which measures inflation in the United Kingdom, declined to 10.7% in November on an annual basis, compared to 11.1% in October, while expectations had indicated that it would decline to 10.9%. On the other hand, the monthly index declined to 0.4% in November from 0.7%.