In a corrective movement, the EUR/USD declined all the way to $1.4123 but worse-than-expected news from the US housing and production markets lifted the major currency pair in the world to a new all-time high at 1.4386 on Friday. Existing Home Sales dropped to 5.04M (Expected: 5.25M) while Durable Goods Order declined by 1.7% (Expected: +1.6%). The tough situation of the US economy might cause the Fed to cut interest rates one more time on their 31^st of October meeting.

Macroeconomic publications certainly helped the Polish Złoty. Net inflation remained at 1.2% on a yearly basis with unemployment falling to 11.6%. Retail Sales were worse than expected at 14.2% (Expected: 16.5%) but still confirming that consumer spending stays strong. The EUR/PLN declined from zł.3.6972 all the way to zł.3.6275 (the lowest in 5 years) while the USD/PLN gained even more, from zł.2.6138 to zł.2.5160 (the lowest in 11 years). The sun is still shining for borrowers having their debt denominated in the Swiss with the CHF/PLN falling to zł.21710.

Adam Narczewski