The US dollar index remained at stable and close levels during trading on Friday and Monday from the beginning of the week until now, and it is currently trading at 104.04 against a basket of major currencies, every week we notice that it has been in the same range since mid-March when it was its highest level 104.72.
Thus, the dollar ends the week and begins a new week strongly, compared to the previous one. In Jackson Hole, Federal Reserve Governor Jerome Powell spoke at the economic symposium in Wyoming, declaring that the economy needs more rate hikes to contain the risk of inflation, but he indicated that the gradient will be careful in the next stage.
The flexibility of the US economy helped to enhance the strength of the dollar, in addition to the tendency of monetary policy leaders to raise interest rates in the coming period. The throne of the most traded currencies in the world.
Analysts of the research department at Bank of America expect that the interest rate will be raised by 25 points again, with the start of reducing the interest rate by 75 points during the next year when things stabilize, and the current scene indicates that Powell will not need to take a significantly tightening policy. The most notable response to the policy since last year.
In the stock market, the New York session indices advanced at the end of the week, as the Dow Jones Industrial Average rose 247 points, the Standard & Poor’s 500 index also rose by 29 points, and the Nasdaq Technology Index rose by 126 points.
This week is full of many important events, the most important of which is the US Consumer Confidence Index for August tomorrow. On Wednesday, the preliminary reading of the US gross domestic product for the second quarter of the year will be released, and on Thursday, the basic personal consumption expenditures rate will be released in the United States every month. Finally, on Friday, the US jobs report for August is released, consisting of three indicators: the unemployment rate, average hourly earnings, and the change in non-farm payrolls.
