After increases of more than 0.45% since the beginning of the week for the general index of the US dollar (Dollar Index) and its testing of the 94.53 levels, the US dollar began to decline after the announcement of US inflation data yesterday, Wednesday, and continued the declines after the results of the US Federal Reserve minutes, to trade this morning, Thursday, at 93.80 levels at It fell by 0.20%, as the dollar index failed to breach the 94.50 levels for the third time since the end of September.

The minutes of the meeting of the US Federal Reserve for its meeting held two weeks ago, issued on Wednesday, showed that the US Federal Reserve is expected to start reducing the pace of bond purchases of 120 billion dollars per month in mid-November, and they are likely to cry the reduction by 10 billion dollars in Treasurys and 5 billion dollars in backed securities MBS mortgages (the Fed has been buying $80 billion in Treasuries and $40 billion in backed securities since December).

With this pace of reduction, the middle of next year 2022 will be the closest date to the end of purchases in the event that no interruption occurs, and therefore investors will be in anticipation of the date of the first interest rate hike, as CME FedWatch expectations for the first rate hike in September of next year rose to 65% after the minutes, compared to 62 % before the record.

One of the oldest strategies used in the fundamental analysis approach is the strategy of buying the rumor and selling the news, according to which the US dollar has risen since the beginning of June by more than 4%, with the US Federal Reserve recommending to reduce bond purchases before the end of the year, and with the Fed’s confirmation to start in November, we notice a decline in the bullish momentum of the US dollar As the reduction in bond purchases is calculated in the current prices of the US dollar.

During today’s session, and in the American period, the markets are awaiting the data of the Producer Price Index (PPI), the second party to the inflation equation, in addition to the weekly unemployment benefits.

The yield on US Treasury bonds for ten years is trading down by about 0.90% at 1.535, down from its highest level since last May.

Commodity currencies are among the beneficiaries of the US dollar’s declines, as the New Zealand dollar rises by more than 70 points and is trading at 0.7020 levels.

The Australian dollar is trading at 0.7417 levels, its highest level for more than a month, with gains of about 40 pips today.

The Canadian dollar, in turn, is gaining more than 45 points and is trading at 1.2392 levels against the US dollar, its highest level in three months.