The recent appreciation of the dollar did not entail a weakening of the Polish currency. The zloty is gaining on the wave of speculation about the MPC’s actions and the usual profit taking from the last move.
No change across the ocean
Yesterday’s macroeconomic data released in the US were not bad. However, they were not so good as to justify deepening the latest records, and that is exactly what happened. The day started with the German IFO index in line with expectations. Then we got to know the revisions of US GDP data, which turned out to be symbolic 0.1% lower than expected. Orders for goods without means of transport matched expectations, while those for durable goods dropped slightly. On the other hand, the American Income and Expenditure Report and the University of Michigan Report were slightly better than expected. In a word, more or less what the analysts expected took place. It’s hard to say why the dollar appreciated by another half a cent against the euro. Apparently, investors felt that the data allowed to maintain the favorable trend for the US economy.
Yesterday in the morning’s comment we wondered if the seasonally good end of the year could help our currency in the near future and why it is different this time. The next 24 hours brought another, almost avalanche weakening of our currency. In fact, little has changed since yesterday .. Read
The zloty is regaining its strength
The Polish currency is catching its breath for the second day in a row. The money supply published yesterday, which is growing faster than expected, is not responsible for any significant element of this move here. Profit-taking is the most frequently indicated. Since the euro went up by 2.5% in two weeks, many investors started to get on their nerves and started selling in order to get a good profit. The zloty is also assisted by MPC members who suggest acceleration in interest rate growth.
New Zealand raises rates
Yesterday, as expected, New Zealand raised interest rates. The main rate increased from 0.5% to 0.75%. It should be noted that the reason for the increase, as in other countries, is rising inflation. In this case, however, it increased to only 4.9%, which is not a drama when compared to other countries. Markets expected more firmness, which is best evidenced by the reaction of the New Zealand dollar, which is clearly losing against its American colleague. Interestingly, the Royal Bank of New Zealand itself reports that next year interest rates should reach 2% there, and ultimately reach 3%. Markets, however, expected faster gains, which resulted in a retreat from the New Zealand dollar.
There are no important readings in the macroeconomic data calendar.