Currency report: A good week for the złoty

On Monday this increase could be observed due to the rising sentiment to the złoty, but also because of the continuing fall of the Japanese yen, increasing the popularity of the carry trade. Tuesday brought further information from the Central Statistical Office of Poland, which published information regarding the average wages and employment in March. Both noted an increase, where average wages increased by a surprising 9.1 percent, which added more fuel to speculation that the Monetary Policy Council would increase interest.

Wednesday was not only a good day on the stock market, but also a good day for all, because of the news about Euro 2012. What this means is that the złoty could be driven to rise in the next few years due to the expected higher economic growth. Currently, the złoty should still continue its increase trend, though a correction is probable due to reasons like the expected increase of the Japanese yen.

The weekly rise of the złoty could be observed on the EUR/PLN market, which fell from the level of zł.3.82 to zł.3.78, and on the USD/PLN market which fell from the level of zł.2.81 to zł.2.78. l

Omar Arnaout X-Trade Brokers Dom Maklerski SA