| 26/01/2024 | 19/01/2024 | %Change | YTD | |
| Euro / LP | 16,228.50 | 16,309.50 | -0.50% | -2.17% |
| Euro / Dollar | 1.0819 | 1.0873 | -0.50% | -2.17% |
| NEER Index | 242.85 | 242.57 | 0.12% | 0.82% |
Lebanese Forex Market
The Lebanese Pound (LBP) remained steady within the new official rate of USD/LBP 15,000 by January 26, 2024.
The Lebanese exchange rate has been hovering consistently around 89,700 USD/LBP over the past period. It is important to note that the Lebanese currency has showed stability recently though it is not stable awaiting to finalize the 2024 draft budget proposal as well as the long-awaited reforms and recovery plan.
As for the Euro/LBP currency pair, the Euro depreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 16,309.50 to €/LBP 16,228.50 by January 26, 2024. The Nominal Effective Exchange Rate (NEER) of the Lebanese pound increased by 0.12% standing at 242.85 points on January 26, 2024.
International Forex Market
The USD Index (DXY) increased by 0.25% to stand at 103.697 on January 26, 2024, with the US economy’s fourth quarter growth overcame estimates and increased at a 3.3% YOY while cooling inflation fueled consumer spending capping a surprisingly strong year that defied recessions worries.
The Euro depreciated against the dollar by 0.50% over the course of the week and reached EUR/USD 1.0819, partially due to the stronger US Dollar (USD). Meeting market expectations, the ECB left rates untouched this week. However, the prospect of prolonged monetary policy restraint, as indicated by Lagarde’s comments, continued to dampen the euro, which extended its losses from Thursday into Friday’s early trading.
The British Pound appreciated against the Dollar by 0.09% to reach GBP/USD 1.2685 by January 26, 2024 after UK manufacturing PMI inched up marginally in January, offering a glimmer of hope after months of decline. However, forecasts for continued growth by quarter-end remain cautious, hinting at potential obstacles ahead, especially as the inflation is still sticky.
For other currencies in Europe, the USD/CHF edged lower by 0.17% by the end of this week to stand at USD/CHF 0.8677 on Friday January 26, 2024. Elsewhere, the USD/CNY and USD/JPY pair depreciated respectively by 0.20% and 0.38% to stand at USD/CNY 7.1804 and USD/JPY 147.76 on Friday January 26, 2024. Furthermore, the USD/CAD pair depreciated by 0.16% to stand at USD/CAD 1.3470 by Friday January 26, 2024, while the AUD/USD saw a slight uptick of 0.12% to stand at 0.65835 by the end of this week.
Commodities
Gold was set for a second weekly decline and reached $2,021.69/ounce on Friday January 26, 2024. Meanwhile, Investors are awaiting US economic indicators that could sway the Fed’s next monetary policy move, keeping gold under pressure for a second week.
Oil prices have been rising lately, standing 3.41% higher at $76.83/ barrel on January 26, 2024 as tensions in the Red Sea is intensifying, potentially leading to supply chain disruptions and affecting energy prices as well as inflation. That means the tensions may carry serious consequences for the world economy.