| 22/12/2023 | 15/12/2023 | %Change | YTD | |
| Euro / LP | 16,504.50 | 16,473.00 | 0.19% | 928.17% |
| Euro / Dollar | 1.1003 | 1.0982 | 0.19% | 3.33% |
| NEER Index | 240.71 | 240.17 | 0.22% | 41.15% |
Lebanese Forex Market
The Lebanese Pound (LBP) remained steady within the new official rate of USD/LBP 15,000 by December 22, 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 appreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 16,473 to €/LBP 16,504.50 by December 22, 2023. The Nominal Effective Exchange Rate (NEER) of the Lebanese pound increased by 0.22% standing at 240.71 points on December 22, 2023.
International Forex Market
The USD Index (DXY) dropped to a low of 101.774 on December 22, 2023, as weekly US unemployment claims rise slightly but job market remains strong as inflation eases. The recent decline in the dollar can be attributed largely to the Fed’ shift. While the Fed maintained current interest rates at its final meeting, it signaled a plan to cut rates multiple times in 2024, officially acknowledging the easing of its stance.
The Euro appreciated against the dollar by 0.11% over the course of the week and reached a high figure of EUR/USD 1.1001. The weaker US Dollar (USD) and the hawkish stance of the European Central Bank lift the EUR/USD pair. Investors await November’s US Core Personal Consumption Expenditure Price Index (Core PCE) on Friday, which is projected to rise 0.2% monthly and 3.3% YoY. The major pair currently trades around 1.1008, gaining 0.05% on the day.
The British Pound depreciated against the Dollar by 0.52% to reach GBP/USD 1.2697 by December 22, 2023. The UK Q3 GDP growth revised lower, stopping Pound Sterling’s gains during the course of this week. On a positive note, the data from the UK showed stronger than expected retail sales in November.
For other currencies in Europe, the USD/CHF edged lower by 1.25% by the end of this week to stand at USD/CHF 0.8556 on Friday December 22, 2023. Elsewhere, the USD/CNY and USD/JPY pair appreciated respectively by 0.34% and 0.25% to stand at USD/CNY 7.1347 and USD/JPY 142.21 on Friday December 22, 2023. Furthermore, the USD/CAD pair depreciated by 0.84% to stand at USD/CAD 1.3274 by Friday December 22, 2023, while the AUD/USD saw an increase by 1.21% to stand at 0.6789 by the end of this week.
Commodities
Gold headed for a weekly gain, reaching a near three-week high level of 2,050.2 by December 22, 2023 amid bets for an early rate cut by the Fed. In fact, expectations for an imminent shift in the Federal Reserve’s policy stance lift the Gold price to its highest since December 4 on the last day of the week.
Crude oil prices jumped by 11.68% to stand at $80.25/ barrel on Friday December 22, 2023 driven by supply chain concerns as Red Sea disruptions intensify. In fact, escalating tensions in the Red Sea by the attacks carried out by Houthis in Yemen is the first sign of an actual spillover in tensions that could affect Global Supply chains moving into 2024.