|Euro / LP||1,561.05||1,545.15||1.03%||-8.64%|
|Euro / Dollar||1.0355||1.0250||1.03%||-8.64%|
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 18, 2022.
Meanwhile, on the parallel market this week, the Lebanese national currency has been oscillating between 39,000 and 40,000 as nothing has changed on both the political and economic aspects. This week, the Lebanese Parliament has failed for a sixth time to elect the country’s next president, while Mikati’s government is still struggling to reach an agreement with IMF.
As for the Euro/LBP currency pair, the Euro appreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 1,545.15 by November 11, 2022 to €/LBP 1,561.05 by November 18, 2022. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound decreased slightly by 0.21% weekly to stand at 171.20 points on November 18, 2022.
International Forex Market
On Friday, the US dollar has bounced back against its major competitors following a set of hawkish comments from Fed officials. Accordingly, the dollar index was trading 0.30% higher compared to last week at 106.516.
Staying in the US, the market heard another hawkish remark from St Louis Fed President Bullard who stressed that rates need to be higher in order to achieve a sufficiently restrictive level, which he considered at 5-7%. In addition, Bullard stated that 5-5.25% rates should be the minimum level.
This week, the Euro appreciated against the dollar by 1.03% to $1.0355 as geopolitical tensions eased after NATO and Poland’s leaders have confirmed that the missile which landed in Poland on Tuesday was not launched by the Russian’s army.
On Friday, the GBP/USD price surged by 1.53% compared to last week at $1.1925 as the British government’s Autumn Statement announced £55b worth of fiscal tightening. Accordingly, the UK government is aiming to regain market credibility following September’s mini budget.
Elsewhere, Japanese currency slightly decreased by 0.08%, at $139.98 amid hot inflation CPI data for the month of October that came in above expectations at 3.6% (vs. 3.5% expected).
This week, the Chinese currency appreciated against the dollar by 0.20% reaching CNY/USD 7.1162.
Gold prices decreased by 0.02% on a weekly basis to $1,762.83/ounce, versus 1,763.118/ ounce in the previous week following signals from U.S. central bankers that more interest rate hikes are on the way.
Crude oil prices slumped by 14% this week to $81.89/barrel compared to $95.89/ barrel in the previous week amid surge in Covid 19 cases in China which could erupt the global demand and recessionary prospects in the US.