Currency report: Data drives FX markets

This is exactly what happened, strengthening the złoty against both the euro and the US dollar.

There was also interesting news from the US concerning home prices in Q2, which fell by 3.2 percent - a record in the 20-year history of the S&P Case-Shiller research of the market. This obviously caused a reaction on the EUR/USD market, which noted an increase on the day. Thursday saw the release of GDP figures, showing that the economy grew by 7.6 percent. That was better than expected, but markets did not react.

On Friday, Ben Bernake stated that the Fed would try to keep the credit crisis under control. He also mentioned that "further declines in homebuilding are likely," but did not actually say what the Fed is planning in the near future and whether there would be a decrease in interest rates.

Analysts believe a decrease will take place in September. On Friday afternoon the EUR/USD market was quoted at $1.36. The złoty was quoted at zł.3.82 against the euro and at zł.2.80 against the US dollar.

Omar ArnaoutX-Trade Brokers Dom Maklerski SA