Currency report: Złoty gains on US data

This week the focus was on central banks worldwide, as well as the much anticipated payroll data from the US. Though interest rates were left unchanged in Canada, Australia, England and the euro zone, investors knew that the week could still be an exciting one.

The złoty started the the week weakened against the euro and the US dollar, due to the increase on the EUR/USD market. Another reason for the weakening of the złoty was the worsening investment climate on world stock markets, which has increased the global fear of risk, driving funds away from the whole region. Both factors have caused chaos in the market over the past few weeks.

Friday brought a return to negative feedback from the US economy, with regard to payrolls. It was expected that 110,000 new work places would be produced, but to investors' surprise, payrolls decreased by 4,000. The markets reacted predictably. On Friday the EUR/USD market was quoted at $1.37, while the EUR/PLN market was quoted at zł.3.81, and the USD/PLN market at zł.2.76.

Omar Arnaout X-Trade Brokers Dom Maklerski SA