Yesterday a clear sell-off, today a calming of moods – this is how the situation on the zloty market looks like on Tuesday morning. The dollar in the morning hours was valued at PLN 3.96, the euro cost PLN 4.29, and the Swiss franc PLN 4.47. In each case, these are slightly lower levels than those observed yesterday evening.
The zloty is influenced by changes in the strength of the dollar
The zloty is currently influenced mainly by what is happening with the US dollar, but also by general market sentiment.
– The last few hours of trading have seen a dollar rally on the markets. Investors are waiting for the meetings of key central banks, says Konrad Ryczko, an analyst at DM BOŚ. – In the case of the Fed, we will most likely not witness a cut, but rather “guidance” towards the September move. Easing is also the base scenario for the BoE. The situation around the BoJ is completely different, where policy is normalizing. Locally, we are waiting for tomorrow’s flash inflation reading for July, where the dynamics will be clearly boosted by the unfreezing of energy prices. From a market point of view, not much is happening on the zloty – most pairs remain in consolidation patterns – adds Konrad Ryczko.
What will the zloty live on?
As indicated, greater emotions on the currency market should appear in the coming days. Today, the focus is on GDP readings from European economies. In the United States, we will learn the Conference Board index reading. In the US, it is also the earnings season, which affects market sentiment.
