Currency report: Dollar's downside

Despite dynamic growth before the correction (from $1.28 to $1.336), the shift was not too painful. The EUR/USD rate slipped, and roamed between $1.226-1.324. This small retreat shows demand advantage and the next week may bring further strength in the euro against the dollar.

The first growth signal for the EUR/USD cross was Friday's reaction on the American job market (pay rolls).

EUR/USD initially dropped down from $1.327 to $1.323 before stabilizing and getting a hold at $1.334. This means the end of the correction.

The złoty imitated EUR/USD changes in recent days and corrected its previous growth. In addition the process was supported by political threats related to the Self-defense sex scandal. The nearest future of the złoty is related to the EUR/USD - if the dollar appreciates, it will provoke złoty growth.

Marcin R. Kiepas

X-Trade Brokers DM SA