Better data was also produced by core durable good orders which increased by 2.5% against an expected increase by a mere 0.4%. What has to be mentioned is that together with the good news form the US market, European citizens encountered worse than expected readings when it comes to the British real estate market and consumer sentiment. Consumer sentiment also fell in the EU as a whole. The decrease on the EURUSD could be seen with a fall from 1.57 from the beginning of the week to 1.54 nearing the end. The next week should bring more information to whether drops will continue on the EURUSD market and the breaking of the level of 1.5284 will be a strong signal that falls to the level of 1.50 in the short term are very probable.

The movements on the EURUSD obviously did affect the Polish Zloty which decreased in value against the US Dollar, reaching the level of 2.18 and increased in value against the Euro reaching a record level of 3.36. What has to be mentioned, is that the Monetary Policy Council left rates unchanged at the level of 5.75%, which did not affect the Polish Zloty. I believe that we should expect a further hike in June, which will be the 8th increase in the year.

Movements on the Polish Zloty during the next week should be determined by movements on the EURUSD market.

Omar Arnaout