Currency report: Markets watch rate decisions

The Bank of England increased interest rates by 25 basis points to the level of 5.50 percent. Markets didn't show much of a reaction, since this information was previously discounted in prices. A similar reaction followed the Fed's announcement that interest rates would remain unchanged in the US, at the level of 5.25 percent. The ECB also announced that it was holding interest rates steady. Investors now expect a rise in June.

Will the US economy be forced to lower interest rates in the future? The latest economic data from the US seems neutral, where retails sales fell by 0.2 percent against an expected increase of 0.4 percent.

Other relevant information was connected with the Producer Price Index, which increased by 0.7 percent against an expected increase of 0.6 percent, and the trade deficit,s which reached a higher-than-expected level of 63.98 billion.

The złoty remained quite stable, noting a slight correction that could be observed both on the USD/PLN market and on the EUR/PLN market. The USD/PLN is currently quoted at zł.2.78 against zł.2.74 from the beginning of the week.

Omar ArnaoutX-Trade Brokers Dom Maklerski SA