The general index of the US dollar is trading at the 104 levels in the middle of the trading session of the European session today, Thursday, May 12 (May), up by about 0.50%, trading at 104.47 levels, the highest level for the index since December 2002, ignoring the inflation declines recorded by the US economy in April, coinciding with the rise in fears A possible economic recession may harm the global economy, which supports the rise of the safe-haven currencies, led by the US dollar and the Japanese yen.

The US inflation figures, which were released during the US session yesterday, Wednesday, came down, but came better than the market expectations, as the markets expected that the annual inflation would decline to 8.1% to fall to 8.3%, and accordingly, the markets maintained their expectations of the pace of the US Federal Reserve tightening monetary policy and raising interest rates in the next two meetings. (June-July) by 50 basis points and expectations that the Fed will slow the pace of tightening have subsided.

The statements of Federal Reserve member and President of the Bank in Atlanta, Rafael Bostick, supported the continuation of the US dollar’s ​​rise, as Bostick confirmed that he will support the US Federal Reserve in raising interest rates by 50 basis points until the interest rate rises to the neutral level, and that the raise by 75 basis points is a possibility so far is very weak, but it is not completely excluded and not There is a scenario that is not put on the table of the Federal Reserve.

In terms of economic data, the markets are awaiting today the Producer Price Index (PPI), the other side of inflation in the United States of America, where the monthly index is expected to decline to 0.5% in April after rising by about 1.4% in March.

The British pound fell by more than 60 pips, trading at 1.2185 levels against the US dollar, after negative figures issued by the British economy at the beginning of the European session, in addition to some negative statements regarding Britain’s exit from the European Union, which returned to the headlines.

The euro lost more than 85 pips against the US dollar, trading at 1.0430, the lowest level for the pair since January 2017.

The Japanese yen in turn rose by more than 100 points against the US dollar, trading at 128.75 levels, benefiting from its status as one of the most important safe haven currencies in the markets, with the rise in fears of a global economic recession.

Commodity currencies, which are considered high-risk currencies, are being sold strongly with the decline in risk appetite in the markets, as the Australian dollar is down by about 65 points, trading at 0.6875 levels, while the New Zealand dollar is trading at 0.6236 levels against the US dollar, down by about 55 points.