|Euro / LP||1,541.33||1,531.27||0.66%||-9.79%|
|Euro / Dollar||1.0224||1.0158||0.66%||-9.79%|
Lebanese Forex Market
To-date, the Lebanese Pound (LBP) remained steady within the official range of USD/LBP 1,514 to 1,514.5, with a mid- price of USD/LBP 1,514.25 by 29 July, 2022.
On the parallel market this week, the Lebanese national currency has breached the limit of LBP/USD 30,000 as several social and economic crises are hanting the Lebanese citizens, last of which was the supply shortage in wheat which made them stand in line and wait for hours in front of bakeries to get their basic necessities of bread. All this is happening while the political deadlock continued to be the king of the political scene, with the impossibility to form a new government and the uncertainty regarding presidential elections.
As for the Euro/LBP currency pair, the Euro appreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 1,531.27 to €/LBP 1,541.33 by July 29, 2022. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound slightly increased weekly by 0.65% to stand at 167.38 points on July 29, 2022.
International Forex Market
The Euro/USD appreciated against the dollar from last week from €/USD 1.0158 to €/USD 1.0224 by July 29, 2022. On Thursday, the Fed confirmed that it will increase interest rates by 75 bps, but Jerome Powel insisted that the US in not in recession yet, as he relied on several positive data like the job labor market. With a softer dollar, investors are bullish now and eager to invest in more risky assets as the Dollar is less used now as a safe haven asset, which explains the appreciation of euro in front of dollar.
Gold prices increased this week by 2.35% by the end of this week to $1,762.44/ounce; while dollar index headed for a second straight weekly loss as it fell by 0.5% to 105.680, following the fed’s decision on Thursday. As such, the negative correlation between the US dollar and gold are there, with strong gold price in front of softer dollar.
Crude oil prices increased this week by 5.91% and recorded $109.55/barrel, driven by supply fears and geopolitical uncertainty amid the announcement of the US President Biden that the Iran deal is highly unlikely in the near future