Another nervous week
US bond yields rose nine basis points due to a wide-ranging sell-off on world debt markets, which started in US treasuries late on Wednesday. The sharp movements on the bond market offered an ideal moment to take profits on the złoty, which could be hit soon by a rise in political risk ahead of this year's general election.
The market reacted nervously, and the Polish currency fell 1.3 percent against the euro and 1.4 percent against the dollar within one session. Another hit came from the NBP (Poland's central bank). One of the deputy governors said that the złoty's strength was significantly hurting export orders. The złoty regained part of its value on Friday, but investors still consider it only a correction or beginning of a long term trend.
This week was light on macroeconomic publications. The calendar included only fourth quarter GDP numbers at 4pm on Friday, but that was much too late to shake the market before the weekend.
Marcin Golik, Warsaw Investment Group (WGI)
The market reacted nervously, and the Polish currency fell 1.3 percent against the euro and 1.4 percent against the dollar within one session. Another hit came from the NBP (Poland's central bank). One of the deputy governors said that the złoty's strength was significantly hurting export orders. The złoty regained part of its value on Friday, but investors still consider it only a correction or beginning of a long term trend.
This week was light on macroeconomic publications. The calendar included only fourth quarter GDP numbers at 4pm on Friday, but that was much too late to shake the market before the weekend.
Marcin Golik, Warsaw Investment Group (WGI)
