The zloty on Thursday afternoon depreciated against the US dollar. The euro and the Swiss franc also remain expensive, although the levels are lower than in the morning. On the other hand, the British pound weakened.
On Thursday afternoon we learned PPI inflation data, ie US production prices. In annual terms, it increased by 7.8%, and in monthly terms by 1%. “The data, which had little impact on the market some time ago, this time increase volatility on the dollar” – indicated the representatives of TMS Brokers.
The dollar appreciates against the euro. “Higher producer prices may consequently translate into a rise in consumer prices in the longer term, hence the dollar reacts with appreciation. The data strengthen speculation about earlier normalization of the monetary policy conducted by the Fed” – assessed the representatives of TMS Brokers. The American currency is also gaining in pair against the zloty.
Zloty – quoted August 12, 2021
We also observe a high level in the EUR / PLN pair. Łukasz Zembik from Dom Maklerski TMS Brokers noted in his morning comment that Wednesday’s increases in the EUR / USD pair strengthened the zloty. “EUR / PLN fell from 4.59 to 4.5718, but the appreciation of our currency seems to be temporary,” assessed Zembik. On Thursday, around 4:20 p.m., you had to pay for the euro around 4.58 zlotys.
In the opinion of Zembik, the weakness of the zloty “results from the turmoil regarding the law threatening the free media”. “It was even pushed through yesterday in a very controversial way. Europe and the whole world see it. Poland may lose its image as a reliable trading partner. Again, political risk prevails. The Broadcasting Act worries international investors. Increased risk premium is now justified” – Łukasz Zembik said in a commentary.
According to the senior economist of ING Bank Śląski, Piotr Popławski, the pressure on zloty depreciation persists. “As far as the zloty is concerned, we can still see the weakening pressure. We are doing a bit worse than our neighbors, which is due to the fact that the NBP has a more lenient policy than the Czech and Hungarian banks. It is very likely that the zloty will reach the level of 4.60 / EUR. We will probably reach technical levels of 4.63 / EUR within a week or so, “Popławski said.
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