Head of market research at Amana Capital, Walid Al-Helou, said that the decline in Inflation rate in the United Statesis a good sign that inflation rates began to decline, as happened last May, with inflation falling in the previous month of April, for one month, and then rebounding after that to 9.1%.
Walid Al-Helou added, in an interview with Al-Arabiya, today, Thursday, that the Fed will not stop the stage of raising interest rates unless it finds clear evidence of a decline in inflation rates, which means seeing a decline for at least 3 months.
He explained that the Fed will not stop raising interest rates suddenly unless inflation rates reach less than 7%, and thus it has no problems to raise interest rates in the coming period, because it reassured the economic situation with the appearance of good employment data last Friday.
Regarding the dollar’s performance, the head of market research at Amana Capital said that the dollar will have a stage of decline after achieving significant gains in the past period against safe haven currencies such as the yen and the franc and other currencies such as the pound sterling and the euro, and these countries will not be able to raise interest rates like what is happening in America. And following the inflation data yesterday, and the increase in expectations of raising interest rates by 50 basis points instead of 75 basis points, it will open the door for a period of dollar decline in the medium rather than long term.
He pointed out that the yen’s strength against the dollar yesterday is a positive thing.
A report from the US Department of Labor showed that consumer prices did not rise at all in July compared to June, indicating the slowest monthly inflation in more than two years as fuel prices fell.
The annual inflation rate in America recorded 8.5% in July, compared to 9.1% in the previous June.