During the past week attention of investors was focused on Friday’s US labor market publications and the American dollar. The USD began its correction movement causing the EURUSD to decline from $1.4270 all the way to $1.4060. The greenback gained against the majority of currencies, including the Polish Złoty.

The USD finally retreated from the all-time high at $1.4280 it reached two weeks ago. It seems that the market is discounting data that the US mortgage crisis is actually going to end soon. The impulse for further strenghtening of the USD came from macroeconomic publications. Non-farm Payrolls were at 110K, better than the 100K forecast. The news that actually caused the USD to rally was the verification of last month’s reading from -4K to +89K.

The Polish Złoty weakened, as most currencies, against the American dollar. The decline against the USD can be explained by investors realizing their profits from the previous week and selling-out riskier investments. The USDPLN advanced from zł.2.6350 to zł.2.6670 throughout the week, reaching even zł.2.6805 on Friday. The EURPLN experienced big swings falling to zł.3.7595 and climbing to zł.3.7750 afterwards. On Friday, the Polish currency came back strong to reach zł.3.7560.

Adam Narczewski