Currency markets started of slowly on Monday, due to Labor day in the U.S and Canada. This was to be the week of Central Banks and obviously the much anticipated Pay-rolls. Though interest rates were left unchanged in Canada, Australia, England and the Euro zone, not affecting world currency markets, investors knew that the week could still be an exciting one.

The Polish Zloty started the off the week weakened against the Euro and the U.S Dollar, due to the increase on the EURUSD market. Another reason for the weakening of the Zloty, was the worsening investment climate on world stock markets, which has increased the global fear of risk, driving funds away from the whole region. Both reasons have caused chaos in the market for the last few weeks.

Significant information from the U.S on Thursday, was connected with pending home sales in July which decreased by a shocking 12.2% against an expected decrease by 2%. On the other hand the American economy also produced better than expected macroeconomic data related to the ISM None-Manufacturing Index which noted an increase to 55.8 against an expected increase to 54.5, Unit Labor Costs which increased by 1.4% against an expected increase by 1.6% and Nonfarm productivity which increased by 2.6% against an expected increase by 2.4%.  Friday, on the other hand brought a come back to negative feedback from the U.S economy, with regard to the Pay-rolls. It was expected that 110,000 new work places would be produced, but to investors’ surprise, Pay-rolls decreased by 4,000. Markets obviously reacted, where the EURUSD market is currently quoted at 1.37, the EURPLN market is quoted at 3.81 and the USDPLN at 2.76.

Omar Arnaout