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Professor Ali Gamal Abdelgawad:  USD/EGP Analysis: US Dollar vs. Egyptian Pound

 

Prepared by: Professor Ali Gamal Abdel Gawad – Lecturer of Investment and Finance

 USD/EGP Analysis: US Dollar vs. Egyptian Pound

 Current Prices:

 Current Price: 47.5150 EGP/USD

 

Daily Change: +0.0950 (+0.20%)

 

Today's Range: 47.4700 – 47.5500 EGP

 

52-Week Range: 46.9700 – 51.7200 EGP

 

Historical Performance

 

Across different timeframes, the USD/EGP pair shows notable volatility:

 

Daily: Up 0.20%, reflecting relative stability with a slight bias towards the dollar.

 

Weekly: Nearly stable +0.01%, indicating limited market movement over the past week.

 

Monthly: Up 0.42%, indicating slight short-term dollar pressure.

 

3-Monthly: Down -0.95%, reflecting slight strength for the pound in the last quarter.

 

6 Months: -4.28% decrease, indicating a relative improvement in the pound over the medium term.

 

1 Yearly: -5.91% decrease, indicating a decline in the dollar against the pound over the past year.

 

5 Years: +202.84% increase, reflecting the significant long-term upward trend of the dollar.

 

Historical High: +1,673.48%, confirming the long history of significant currency volatility.

 

Technical Analysis

 

The daily chart shows a narrow trading range between 47.47 and 47.55 pounds, indicating relative market stability with a slight buying bias.

 

Support Levels: 47.47 – 47.42 pounds

 

Resistance Levels: 47.55 – 47.60 pounds

 

This narrow range reflects the balance of supply and demand in the market, with varying impacts from economic factors such as inflation, interest rates, and the monetary policies of the Central Bank of Egypt.

 

Economic Factors Influencing the Exchange Rate

 

Central Bank of Egypt Policy: Any adjustment to the interest rate or anti-inflation measures could affect the strength of the Egyptian pound against the US dollar.

 

Foreign Reserves: Increases or decreases in reserves affect the Central Bank's ability to support the pound.

 

Imports and Exports: Increased demand for dollars to cover imports could raise the exchange rate.

 

Global Factors: Global movements of the dollar against other currencies and the impact of global financial markets on capital flows into Egypt.

 

Future Outlook

 

Short Term: The exchange rate is expected to remain within a narrow range with a slight bias towards the dollar if economic conditions remain stable.

 

Medium- to Long Term: Any inflationary pressures or changes in US or domestic interest rates could lead to greater movements in the USD/EGP pair.

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