As we mentioned in the weekly report, the currency markets continue to trade in a narrow and limited range since the beginning of the week, as the general index of the US dollar is trading at an increase that does not exceed 0.15% since the beginning of the week, amid anticipation in the markets for the most important data of the week today, Thursday, represented in the US inflation data, which will be It has a direct impact on market movements.

Inflation is expected to rise for the fifth month in a row to 7.2% – 7.3% in the annual reading from 7%, the highest reading since 1982, while the basic reading, excluding food and energy prices, is expected to rise to 5.6%, which supports the rise in expectations for the rise rate of Half a point and therefore supports the continuation of the US dollar’s rises during the remainder of this week.

The monthly rate of inflation is expected to slow down in January at 0.4%, compared to 0.5% in December. The statements of the members of the US Federal Reserve (Meister-Bostick) during the session yesterday, Wednesday, were less hawkish than before, as the US Federal Reserve President in Cleveland Loretta Meester indicated that she does not see a necessary need to raise interest rates by 50 basis points at the March meeting, while the US Fed member Bostick expressed optimism that Inflation is close to declining, and the evidence indicates that inflation will return to the rise in the fourth quarter of this year.

These statements from the Fed members, which were also preceded by less hawkish statements last week from three members of the Fed, reduced the markets’ expectations regarding a more hawkish policy in the March meeting, and thus put pressure, albeit limited, on the US dollar’s ​​trading and supported the rises of US stocks.

Inflation forecasts and movement scenarios Expectations of future contracts according to the CME FedWatch tool for the March meeting, calculating a half-point increase by 23%, after it was the highest levels of 33% at the beginning of the week, and it has inflation figures.

Expectations will remain in the markets with a quarter-point increase, and this is an estimate calculated in the current prices, and therefore we will witness a decline in the US dollar at the end of the matter (it is not excluded that we will see some temporary increases if the numbers match).

The general index of the US dollar is trading at 95.52 levels this Thursday morning, before the opening of the European markets, while the yellow metal continues to rise for the fifth consecutive session and is trading at 1833 dollars per ounce.