The US Dollar Index achieved a strong rise during Tuesday's trading, supported by positive data from today's US Employment Cost Index, despite the decline in US Treasury yields, alongside the expansion of the conflict in the Middle East between Hamas and the Israeli occupation forces, especially after Israel deepened its military offensive in northern Gaza Strip, which boosted the US dollar as a safe-haven currency.

In addition, markets are awaiting the Federal Reserve's Monetary Policy Committee meeting scheduled for tomorrow, where the Fed will announce the new interest rate decision, along with the monetary policy statement and remarks by Fed Chair Jerome Powell, which will reflect on the performance of the US dollar during trading.

US Dollar Index performance now:

On today's trading front, the index that measures the performance of the US dollar against a basket of six other foreign currencies achieved a strong rise of 0.51%, reaching the level of 106.675 points, benefiting from some positive and supportive developments, of which we highlight the most prominent:

The US dollar received strong support from the positive quarterly US Employment Cost Index data released today, which measures the change in total employee costs including wages, salaries, and benefits on a quarterly basis. According to data issued by the US Bureau of Labor Statistics, the Employment Cost Index within the US recorded growth of 1.1%, exceeding market expectations which had indicated growth of only 1.0%, strengthening speculations about the possibility of the US Fed tightening its monetary policy and raising interest rates at its upcoming meeting, contributing to the rise of the US Dollar Index in trading.

Moreover, the US dollar enjoyed clear demand as a safe haven during today's trading, due to concerns over the risks of the conflict between Hamas and Israeli occupation forces expanding beyond the Middle East region, especially after Israeli Prime Minister Netanyahu announced that his army is making steady progress in the Gaza Strip, particularly after Israel deepened its military offensive in the northern sector, raising the US dollar's attractiveness as a safe haven.

Furthermore, markets are closely monitoring the Federal Reserve's Monetary Policy Committee meeting tomorrow, Wednesday, where the bank is expected to announce the new interest rate decision along with the issuance of the monetary policy statement, as well as remarks by Federal Reserve Chair Jerome Powell regarding monetary policy and inflation, which will affect the upcoming US dollar trading.