The general index of the US dollar continues to record gains and record levels, the highest since 2002, with the opening of the European markets for today’s session, Thursday, the 14th of July (July), to trade at levels of 108.60, taking advantage of the US inflation figures that came to their levels in forty years.

The Consumer Price Index (CPI), which measures inflation in the United States of America, rose on an annual basis over the past 12 months to 9.1% in June, according to figures released on Wednesday, compared to 8.6% in the May reading, at its highest pace since 1981, while the monthly index rose to 1.3% of 1%.

These high and frightening numbers of inflation do not necessarily mean that inflation has reached a peak in the largest economy in the world, and therefore markets expectations have risen that the US Federal Reserve may be more strict in monetary policy in the coming period, especially after the statements of the US Federal Reserve member and President of the Federal Reserve in San Francisco, Mary Daly. After inflation data that a 100 basis point hike from the US Federal Reserve in July has become a possibility.

In a related context, market concerns about a possible economic recession in the American economy are rising, as we are witnessing a reversal in the yield curve on US Treasury bonds at the largest pace since the year 2000, in a clear indication of the expected economic recession, as the yield on two-year bonds trades at 3.2151 this morning, while the yield on bonds is trading at 3.2151. The 10 years are at 2.967.

Fears of economic recession supporting the rises of safe havens, the tightening of the US Federal Reserve for monetary policy, and the stronger raising of interest rates are all factors that motivate the US dollar, which recorشds high levels one session after another, while the euro and the Japanese yen record low levels.

The euro is trading at 1.0025 levels against the US dollar, after it tested the parity point twice since the beginning of the week, but bets and turmoil rise around 1:1 levels due to the technical and psychological importance of the level.

The Japanese yen, in turn, lost about 140 pips on Thursday morning and traded at 138.90 levels for the first time since September 1998 due to the inverse relationship in monetary policy between the hawkish US Federal Reserve and the lenient Bank of Japan.