The US dollar index declined

The US dollar index declined

The US dollar index declined: The value of the dollar index decreased to 103.18 during last week’s trading
Amid investors’ anticipation of the disclosure of annual personal consumption expenditures


US dollar index
Personal consumption expenditures

US dollar

The US Dollar Index retreated from its yearly peak around 104.85 to achieve a decline
It declined to 103.18 during last week’s trading.

During this week’s trading, investors are awaiting many important data
On top of this are annual personal consumption expenditures during trading on Thursday,
February 29, where the monthly close is.

Economists have mixed expectations for the upcoming numbers
They expect stability around 2.9%, as in the previous reading, without change

The importance of the event comes from the fact that the US Federal Reserve is fighting high inflation
Through monetary tightening, he promises the markets three rate cuts during the current year
Especially after the bank’s preferred inflation index dropped to 2.9%.
The question that occupies the minds of traders in the financial markets now
is when the US Federal Reserve will start reducing interest rates,
and investors’ expectations regarding the reduction during next May will fall below 50%.

In the latest statements, bank officials explained the need to approach inflation targets
About 2% before the start of the US interest rate cuts.



Personal consumption expenditures

In the case of a decline less than expected, the last reading was below 2.9%.
It may enhance the negative scenario for the dollar index,
while at that time, it will support the bank’s decision to reduce interest rates.
The bad scenario for the Fed is that inflation will rise again
The highest level of 2.9% at the time will support prolonged maintenance
of the US interest rate during the current year
Before the reduction begins, it may also support some interest reductions of less than three times
This will prompt investors to increase their purchase of the US dollar
We may then witness more positivity for the dollar index and a return again

Close to its highest levels this year, approximately 105.


The US dollar index declined