The general index of the US dollar is trading at an increase of about 0.24%, at the beginning of the trading session today, Friday, August 25th, in the closing session of the week, at 104.15 levels, in an increase for the second session in a row, after gains of 0.60% yesterday, Thursday, to trade at its highest level since the beginning of last June, amid anticipation for statements Jerome Powell later today.

The US dollar has been receiving support since the beginning of the week from the rising market expectations regarding a stronger tightening of monetary policy and one hike before the end of the year from the US Federal Reserve in the remaining three meetings before the end of the year (September, November, December).

The markets are awaiting the statements of the annual meeting of the Jackson Hole Conference, which began yesterday, Thursday, in Kansas City, Wyoming, and includes central bankers from all over the world to analyze the expected statements about monetary policy, as Jerome Powell and Christine Lagarde are expected to speak later today.

And the statements of the US Federal Reserve members yesterday, Thursday, on the sidelines of the meeting, Patrick Harker, President of the Federal Reserve in Philadelphia, and Susan Collins, President of the Federal Reserve in Boston, were contradictory, as Harker believes that the current levels are sufficient, while Collins believes that there may be a need for more hikes.

Futures forecasts using the FEDWatch tool from CME are now seeing an increase in interest rates by 25 basis points in the November meeting, by about 42%, compared to less than 10% at the beginning of the week, while you do not see any movement by the Federal Reserve in its meeting next September, and fixing interest by 80%.

From Japan, where figures released this morning showed that inflation slowed in the third largest economy in the world in August for the second month in a row, as the core consumer price index for Tokyo, which excludes fresh materials prices, but includes fuel costs, slowed by 2.8% from 3% in July, while the index was stable. Which excludes food and fuel at 4%

. On the other hand, the IFO index, which measures confidence in Germany, declined to 85.7 in August, compared to 87.4 in July, while it had been expected to decline to 86.8. In details, the current situation index declined to 89.0, compared to 91.4 in July, marking the lowest pace since August 2020, while the expectations index fell to 82.6 from 83.6.

The Japanese yen regained the 146 levels it lost yesterday, Thursday, affected by the rises of the US dollar, while the euro is trading at 1.0789 levels, its lowest level in more than a month.

The Turkish lira, in turn, is declining by 2.5% and is trading at 26.50 levels, after it rose nearly 8% against the US dollar yesterday, Thursday, after the Central Bank of Turkey, led by Governor Hafez Jay, surprised the markets by raising interest rates more than expected to 25% from 17.5. %, the largest increase since 2018, while expectations indicated an increase to 20%, which reflects the willingness of the new management of the bank to abandon the previous unconventional policy.