What has to be mentioned is that though the EURUSD market ignored the Feds previous comments, this time the weakening of the US currency was meaningful. From the technical point of view the breaking of the level of 1.3881 is a signal pointing to a trend change at least in the medium term. The weakening of the US Dollar does also point to the possibility of restoring calm on global stock markets.  What should be underlined is the fact that markets currently lack liquidity, which means that investors can expect a bigger volatility, which obviously will not have a big analytical value.

On Wednesday the EURPLN market tested the level of 4.1355, which is the high from mid 2006. The market is  speculating that the strong depreciation of the Polish Zloty is connected with the action of one investment bank, which could be closing its clients bad transactions. The weakening of the Zloty is also connected with investors expectations of a rate decrease during the week and the worse than expected readings of industrial production which signal that the Polish economy will suffer more than most economists have previously predicted.

Pawel Nieradka