If there is more market strength then the minimum target may be shifted to the level of 1.2832. Even though the EURUSD market noted a meaningful fall, not all macroeconomic data from the US economy seemed to be positive. Worse than expected readings were produced from retail sales which decreased by 1.1% against an expected increase by 0.3% and also by the ever ailing real estate market, where building permits increased by 0.51 million against an expected increase by 0.55 million and housing starts which noted an increase by 0.51 million against an expected increase by 0.55 million. What has to be also underlined is that the PPI noted a negative annual result for the first time since 1955. On the other hand the capacity utilization rate decreased to the level of 69.3%, signaling that inflation may increase during the year.
The fall of the EURUSD market was strongly determined by the uncertainty and lack of a clear path which will be followed by the ECB, in order to help in the recovery of the European economy. Factory output also plunged in the Euro Zone during the month, signaling a possible deepening of the economic slowdown.
As to the Polish Zloty, then it continued to strengthen against all major currencies. The market, however is within the boarders of significant support levels which could cause a short term weakening of the Polish currency. If the USDPLN market breaks the level of 3.12, then this will be a strong signal that the Zloty will continue to strengthen, whilst the same signal will be generated on the EURPLN market when the level of 4.20 will be broken.
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