In the absence of strong economic data affecting market movements since the beginning of the week, the statements of Jerome Powell, Chairman of the US Federal Reserve, at the Economic Forum in Washington yesterday, Tuesday, were the main movers of the markets, after he confirmed that the process of reducing inflation had already begun and that the recent labor market numbers were stronger than expectations.

And that the US Federal Reserve may need to conduct more monetary tightening operations and raise additional interest rates. Powell’s statements were optimistic about inflation, as he indicated that he expects inflation to decline strongly during the current year, but it may take time to reach the bank’s target of 2%, while leaving the upcoming economic data to determine the course of monetary policy from the US Federal Reserve.

On the other hand, Kashkari, a member of the US Federal Reserve and head of the Federal Reserve in Minneapolis, indicated that the recent labor market figures show that the US Federal Reserve needs more rate hikes. The market’s reaction came in reverse with Powell’s hawkish statements, in addition to Kashkari’s statements.

The general index of the US dollar retreated from its highest level in four weeks, and is now trading at 103.00 levels with the opening of the European markets, while the US indices concluded in the green color at the close.

FedWatch futures markets estimates from CME for a 25 basis point rate hike at the Bank’s May meeting fell to 67% from more than 70% prior to Powell’s comments.

The euro is recording gains against the dollar, supported by the dollar’s declines, in addition to the statements of a member of the European Central Bank’s Board of Directors, Nagel, who stressed that there is a need for more interest rate hikes in the coming period, at a strong pace.

The yellow metal is trading at $1879 an ounce, up by 0.31%, recording gains for the second consecutive session.

The Japanese yen, in turn, is trading at 130.95 levels, on the rise against the US dollar, after figures issued by the Japanese Ministry of Finance showed this morning that the current account surplus in Japan decreased sharply in December, highlighting the impact of the ongoing trade deficit and the weakness of the yen on the balance of payments in the country, as it reached A surplus of 33.4 billion yen in December, a decrease of 1.8 trillion yen compared to November.