Currency report: Correction week

CPI decreased to 2.3 percent year-on-year, the current account deficit reached R539 million and average wages increased by 8.4 percent, which also means higher inflation pressure. From the technical point of view, corrections on the EUR/PLN and USD/PLN markets could be over and market movement could return to its long-term decrease trend. On Friday the EUR/PLN market stood at zł.3.78, while the USD/PLN market stood at zł.2.80.

Interesting information came from the US real-estate market last week, which has been in a downturn for the last few months. Housing starts rose in the month of April by 2.5 percent against an expected fall of 2.2 percent. On the other hand, building permits dropped by 8.9 percent, the biggest fall in 17 years. What has to be underlined is that building permits depict the confidence in the real-estate market. In spite of the mixed information, the US dollar strengthened, which could be observed in the EUR/USD market, which on Friday was quoted at $1.34.

Omar Arnaout X-Trade Brokers Dom Maklerski SA