The USD to EGP exchange rate is currently biased towards bearish.
Recent forecasts indicate a significant influence from the Federal Reserve's anticipated interest rate cuts, which may weaken the USD. The Egyptian pound is projected to experience gradual depreciation as the IMF forecasts an average of EGP 54.05 per USD by 2026. Economic growth is a key driver, with the Arab Monetary Fund projecting Egypt's economy to expand to 4.7% in 2026, potentially supporting the EGP in the long run.
In the near term, expect a trading range with limited movement around current levels, reflecting recent stability with fluctuations between 46.98 and 47.88.
Upside risks include better-than-expected economic data from the U.S. that could support the USD. Conversely, worsening inflation in Egypt or shifts in regional political stability could adversely affect the EGP.