EGP: Further Weakness Ahead

The Egyptian pound looks set to continue trading in a tight sideways band against the US dollar in the near term. Having initially weakened from EGP5.8030/US$ in January to EGP5.9500/US$ at the start of April, the unit has repeatedly failed to make a decisive push through multi-month support in the EGP5.9800/US$ area in recent months. In the near term, EGP5.9800/US$ will be key to watch, with a fall through this level of support setting up further losses towards EGP6.0000/US$ in the first instance.

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