Currency report: Waiting for the President

The EURPLN cross moved in a very tight range around zł.3.90 as investors hoped that Donald Tusk would win the elections. Even the big sell-off on the Warsaw Stock Exchange and the weakening Hungarian forint were unable to move the złoty. There was more volatility on the USD/PLN cross, which was caused by dollar fluctuations in the global market.

Nothing has changed on the international market. The dollar once again tried to appreciate against the euro and the yen after higher than expected PPI data and very positive capital inflows into the US, but was unable to sustain its gains. On Wednesday the EUR/USD cross hit its lowest level since July, dropping below $1.19, but very quickly coming back. The unsuccessful bid gave more steam to dollar bears and the EUR/USD cross jumped as high as $1.208 during early trading on Friday. As long as the EUR/USD cross remains below $1.22 further downside probes are very possible.

Marek Węgrzanowski

WGI Dom Maklerski