Currency report: Złoty strong after data

The euro fell from zł.3.89 to zł.3.8750, and the US dollar from zł.2.96 to zł.2.9450. The złoty gained after it was announced that industrial output grew much faster than expected in January, at a rate of 15.6 percent, prompting the Finance Ministry to forecast growth in the first quarter above 6.4-6.5 percent.

The positive trend in the Polish economy was confirmed when information about retail sales data for January showed that the economy was accelerating to a point that could trigger monetary tightening in the months ahead. Polish retail sales rose 16.5 percent year-on-year in January, faster than the expected 13.8 percent. Next week investors will await Wednesday's decision on interest rates, but economists see rates on hold this month.

The German business sentiment indicator, published Friday, fell slightly more than expected in February as a sales-tax rise weighed on Europe's largest economy. The Munich-based Ifo research institute said its business-climate index fell to 107.0 from 107.9 in January. The euro fell for a moment to $1.31, but rose in the afternoon to $1.3160.

Marek Węgrzanowski

X-Trade Brokers Dom Maklerski SA