Currency report: The złoty remains on the rise

Meanwhile, as risk aversion declined, demand for the złoty increased and the Polish currency strengthened over the course of the week of June 18-22. By week's end, the EUR/PLN rose from zł.3.77 to zł.3.78. The USD/PLN started the week at zł.2.8340 on Monday and tumbled to zł.2.8155 on Friday.

Industrial production was up by 8.1 percent against an expected 10.1 percent increase and average wages climbed 8.9 percent while analysts had expected 8.1 percent. Higher wages increase inflationary pressures, thus there are some worries of an interest-rate hike.

The turnaround on the bond market obviously affected the EUR/USD, causing the dollar to slip. On Tuesday, building permits in the US increased by three percent against an expected 1.6 percent, boosting the dollar, but the euro rebounded afterwards. Another pulse came on Thursday when leading indicators and the Philadelphia Fed Survey index were better than expected. The EUR/USD declined from $1.3433 to $1.3377 rebounding to $1.3453 on Friday.

Adam Narczewski, X-Trade Brokers Dom Maklerski SA