| 11/11/2022 | 04/11/2022 | %Change | YTD | |
| Euro / LP | 1,545.15 | 1,471.78 | 4.99% | -9.57% |
| Euro / Dollar | 1.0250 | 0.9763 | 4.99% | -9.57% |
| NEER Index | 171.56 | 175.16 | -2.06% | 14.47% |
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 November 11, 2022.
Meanwhile, on the parallel market this week, the Lebanese national currency has fluctuated around LBP/USD 39,370 with a minimum of LBP/USD 38,000 and a maximum of LBP/USD 40,200, ending at LBP/USD 40,000 on Friday noon. The Lebanese currency depreciated further this week despite the announcement of the Central Bank regarding stopping its purchase of dollars from the parallel market. Hence, continuous failure to elect new President under dysfunctional Government is adding an uncertain outlook for the country.
As for the Euro/LBP currency pair, the Euro appreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 1,471.78 by November 04, 2022 to €/LBP 1,545.15 by November 11, 2022. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound decreased slightly by 2.06% weekly to stand at 171.56 points on November 11, 2022.
International Forex Market
The US dollar weakened against its major competitors early Friday as the dollar index dropped and traded 4.64% less at 107.32 up from last week 112.54. Markets have been discharging their dollar positions after weaker than expected US inflation data published on Thursday. However, It is certainly too early for a broad dollar downturn but decelerated inflation surely represents an opportunity for the Fed to soften its tightening policy while European economy would remain under the war and energy pressure.
As for the Euro, it regained parity with the green currency and closed the week at $1.0250 as euro currency is benefiting from lower gas prices in the Eurozone coupled with a surprising mild weather.
Meanwhile, the GBP/USD price jumped significantly and stood at 1.1745 on November 11, 2022 amid high sensitivity to global risk sentiment in addition to a smaller than expected contraction of 0.2% in GDP numbers despite that September figures have been heavily affected by the Queen’s funeral closures.
As for the Swiss Franc, it appreciated to 0.9608 this week, against 1.0083 Swiss/ Dollar the previous week post US inflation report. In fact, Swiss market awaits SNB Chairman Thomas Jordan talk as he has a significant impact on the CHF by determining short-term interest rate policy.
Beyond Europe, the Japanese currency added 4.85% this week, reaching JPY/US 140.65 despite a rough 19% slump this year. The Yen outperformed due to the dollar’s storm.
This week, the Chinese currency appreciated against the dollar by 1.99% reaching CNY/USD 7.1105 after the country’s health authorities eased some of their strict zero-COVID policy. On the other hand, the Canadian currency posted remarkable gains against the dollar and broke below the stubborn 1.35 level reaching CAD/1.3302.
Commodities
Gold prices soared by 7.06% on a weekly basis to $1,763.11/ounce, versus 1,646.8/ ounce in the previous week. As usual, the gold moved contrary to the weak dollars by the end of this week affirming its inverse relation to the green currency.
Crude oil prices increased significantly by 5.62% this week to $95.89/barrel compared to $90.79/ barrel in the previous week. In fact, potentially slower pace of interest rate hikes that could strengthen economic growth as well as oil demand growth drove crude oil higher prices.