Currency report: Złoty opens stronger

Strong Q3 GDP data in Poland, as well as the Monetary Policy Council's decision to leave rates unchanged, also helped the currency. EUR/PLN broke key resistance at zł.3.90 and is close to this year's low at zł.3.857. The support for the złoty is also coming from the government, which announced that the złoty should appreciate against the euro in Q4 as the political situation stabilizes.

On Monday, weaker-than-expected existing home sales numbers in the US and expectations for an interest-rate hike in the eurozone drove the EUR/USD as high as USD1.19. However, the euro bulls were unable to break the resistance. Strong US economic releases on Tuesday helped to ease some of the pressure on the dollar that emerged after Monday. EUR/USD dropped to USD1.1740 but the general air of uncertainty remained in place as investors waited for Thursday's ECB meeting and Friday's US employment report.

Maciej Chojnacki

WGI Dom Maklerski