Currency report: End of corrections?

From the technical point of view, it may seem that after a three-week fall the złoty could once again return to its increase trend. On the other hand, from the fundamental point of view, we can see mixed information from the Polish market. The Central Statistical Office announced that retail sales increased by 15 percent against an expected increase by 19 percent. Moreover, industrial production increased by 12.4 percent against an expected increase of 15.9 percent. However, the unemployment rate fell as expected to the level of 13.7 percent from 14.4 percent.  At the end of the week, the EUR/PLN market was quoted at zł.3.80 whilst the USD/PLN market was quoted at zł.2.82.

Corrections may also end on the EUR/USD market, due to the rising positive sentiment towards the euro. This optimism could be directly seen on the EUR/USD market, which once again portrayed the power of the bull market. It currently seems possible that the ECB may increase interest rates by a further 25 basis points in the near future. At the end of last week, the EUR/USD market stood at $1.34

Omar Arnaout X-Trade Brokers Dom Maklerski SA