As risk aversion declined, the EUR/USD kept rising almost reaching its yearly high at 1.5144. Increasing stock indices were good news for the Złoty, which remained strong. A positive impulse came from the European Central Bank, which despite leaving interest rates unchanged in the Euro zone at 1%, increased GDP forecasts for European economies, including Poland. A little anxiety on financial markets brought worse than expected publications from the U.S – the ADP (jobs lost in the private sector) and the ISM – services reports. Still, the markets did not react nervously since everybody was waiting for the U.S labor publication on Friday.
Friday’s Nonfarm payrolls really surprised investors. Analysts were expecting a decline in jobs by 130 thousand while the publication showed only a drop by 11 thousand! The news caused high volatility on the currency markets. The EUR/USD instantly tumbled all the way to $1.4945 and this was the first positive reaction of the dollar to better than expected macro news. Affected were also emerging markets’ currencies including the Złoty, which appreciated very quickly. The EUR/PLN finishes the week at zł.4.0380 (zł.4.16 on Monday) while the USD/PLN at zł.2.7022 (zł.2.77 on Monday) and there is pressure towards even lower levels.
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