Gold Prices Touched Multi-High Tops This Week

Lebanese Forex Market

The Lebanese Pound (LBP) remained steady within the new official rate of USD/LBP 15,000 by December 01, 2023.

The Lebanese exchange rate has been hovering consistently around 89,700 USD/LBP over the past month. It is important to note that the Lebanese currency has showed stability recently though it is not stable as uncertainty and worries are still looming with no recovery plan has been put on table to solve the ongoing financial crisis in the country.

As for the Euro/LBP currency pair, the Euro depreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 16,357.50 to €/LBP 16,348.50 by December 01, 2023. The Nominal Effective Exchange Rate (NEER) of the Lebanese pound slightly increased by 0.08% standing at 240.19 points on December 01, 2023.

International Forex Market

The USD Index (DXY) dropped to a low of 103.284 on December 01, 2023 as the October personal income and outlays report expected to reveal a slowdown in economic activity from the robust pace of the third quarter. With a moderation in personal income growth likely impacting consumer spending, firms’ price mark-ups may be repressed. Consequently, both inflation and core inflation are anticipated to decelerate, reinforcing officials’ confidence that current rates are adequately restrictive. In turn, this is poised to strengthen FOMC officials’ decision about existing rates are already sufficiently restrictive, attributing the deceleration in consumer prices to a slowing economic activity rather than immaculate disinflation.

Across the Atlantic, the renewed weakness in the US Dollar is boosting most major currencies, with GBP/USD is on the rebound towards 1.2665, supported by hawkish BoE commentary. BoE suggests a potentially prolonged period of restrictive policy to achieve a 2% inflation target over the medium term. The UK awaits S&P Global’s final Manufacturing PMI data, but its impact on the Pound Sterling is expected to be minimal.

Meanwhile, the EUR/USD did not maintain recovery momentum above 1.0900, as it reached a low of 1.0895 on Friday December 01, 2023 triggered by ECB interest rate cut speculations amid softer Euro area inflation data. Traders are eyeing the final Eurozone Manufacturing PMI later today, anticipating insights before ECB President Christine Lagarde’s speech.

For other currencies in Europe, the USD/CHF edged lower by 1.17% by the end of this week to stand at USD/CHF 0.8734 on Friday December 01, 2023. Elsewhere, the USD/CNY pair depreciated by 0.24% to stand at USD/CNY 7.1371 while the USD/JPY pair dropped 1.02% on a weekly basis by end of this week reaching 147.85 ranges on Friday December 01, 2023.

Moreover, The USD/CAD touched a weekly low around 1.3521 before recovering to the 1.3601 region as unemployment rate in Canada expected to tick higher at 5.8% in November, which might push the Canadian dollar down to the 1.33 levels. Meanwhile, despite a decline in Australian PMI to 47.7 from the previous reading of 48.2 expected, the AUD/USD saw an increase, stabilizing around 0.6629 by the end of this week.

Commodities

Gold sticks to its weekly multi high gains and ended the week at a high of 2,046.09 on December 01, 2023 driven by growing concerns about a global economic slowdown that boosted support to the yellow metal. The risk on mood might attract new buyers for the gold especially before the US PMI and the Fed Chair Powell’s speech in December.

Talking about global slowdown, the crude oil recorded a drop of 1.06% after several gains recently and ended the week at $80.65/barrel. Moreover, oil declined this week following an OPEC+ meeting that promised further output cuts and wave further retracement for the oil market.