It seems that investors are getting ready for the holidays. The last couple of sessions can be characterized by low volatility. A couple of important macroeconomic reports did not change the situation. The awaited publications from the US housing markets (housing starts and building permits) showed that the market is still not in a good condition but the readings matched expectations. Other news that could move the market were interest rates decisions. The Bank of Japan left interest rates unchanged at 0.5% as well as the Polish Monetary Policy Council at 5.0%.

During the whole week volatility was low and trading slowed down. Most currency pairs stayed in horizontal trends. The EURUSD, the major currency pair in the world stabilized well below the 1.45 level. During the course of the week it moved between 1.4315 and 1.4415. A little bit more volatile was the Polish Złoty but that is normal for emerging markets currencies. The USDPLN remained in the 2.50 – 2.52 while the EURPLN in the 3.6110 – 3.6240 range. The British pound kept loosing value and was quoted at 1.9870 at the end week, the lowest sine mid-September.

Adam Narczewski