Currency report: The złoty weakens

Although both parties were ensuring voters that they are ready to form a coalition, no agreement has been reached. Foreign investors were selling Polish bonds and buying euro in order to leave the country. The EUR/PLN cross reached zł.4.0155 on Thursday, which is the highest level since early September. Next week could bring further weakening of the złoty as PiS will probably form a minority government. On the international currency market the dollar lost ground against the major currencies. Investors were selling the American currency because of the nomination of Ben Bernanke as the new Fed chairman on Monday and poor consumer confidence data released on Tuesday. After a small correction the dollar continued to decline on weaker than expected US September durable goods orders. The dollar was also suffering from concerns that GM may face serious problems after the bankruptcy of Delphi. However the EUR/USD cross was unable to break above $1.22, which may suggest that we will stay in a wide consolidation area between $1.19 and $1.22.

Maciej Chojnacki

WGI Dom Maklerski