On Thursday the zloty exchange rate was stable, but at the beginning of the week it lost a lot as the dollar strengthened against both the euro and the zloty. From Tuesday to Thursday morning, the dollar gained over 0.5 PLN against our currency and has maintained these gains so far. The zloty is also losing against the euro this week.
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See also: Interest rate cut. The economist predicts the move of the NBP
The exchange rate of the zloty goes down as the chance for further interest rate hikes in the US increases
The key event for the FX market this week was Wednesday’s Fed minutes (minutes of the minutes of the FOMC meeting), which confirmed that the US central bank intends to continue raising interest rates, and the June abstention from raising interest rates (for the first time in 10 meetings) is only a pause in the cycle.
“What’s more, some members wanted a raise at the June meeting, but a consensus was reached to extend the cycle over time and make decisions from meeting to meeting. It seems that the July increase is rather certain” – noted Michał Stajniak, analyst in his commentary XTB brokerage house.
In his opinion, however, if the Fed decided not to raise rates in July with such overtones, the market could treat it as the end of the cycle.
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2023-07-06 14:47:03
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