No major changes on currencies. The dollar has returned to the "channel"

Wednesday morning did not bring any major changes to the Polish market. currency market. It should be noted only the dollar's return to the spring sideways trend channel. However, this was a result of volatility on the Euro-dollar pair, and not the question of the strength or weakness of the zloty.

On Wednesday at 9:30 the dollar cost 3.7869 PLN. The day before the USD/PLN exchange rate fell by almost 4 groszy after an equally strong increase the day before. In this way the method of quoting the American currency returned to the one in force since the middle April sideways trend in the range of PLN 3.70-3.80.

All this heightened volatility in the euro-zloty pair was the result of the EUR/USD exchange rate fluctuations. In Monday the dollar gained significantly on the wave of de-escalation of the conflict trade between the USA and the People's Republic of China. But on Tuesday the euro made up for its losses thanks to a slightly lower than expected CPI inflation reading in the United States. Such the result increases the chances of resuming the interest rate cut cycle in the Reserve Bank Federal.

All this happened with the euro to zloty exchange rate generally not exceeding PLN 4.25. On Wednesday morning, the community currency was valued at PLN 4.2385, which is almost half a grosz higher than the day before. Last week the EUR/PLN exchange rate was below the PLN 4.25 line after breaking out from the April sideways trend at range 4.25-4.30 PLN.

- A stronger impulse for the appreciation of the zloty could be progress in ceasefire negotiations between Ukraine and Russia – talks are progressing, but we remain skeptical about their chances of success. For now The Polish currency is also supported by the increased appetite of the markets for risk, but one can have fears of a re-escalation of the conflict between the EU and the US. The balance of risks favors stabilization of the zloty at current levels in the coming days - analysts wrote Pekao Bank in the morning report.

There was a bit more movement on the franc-zloty pair. In the morning for the Helvetian currency you had to pay 4.5190 zlotys, which is almost two groszy more than the day before. CHF/PLN exchange rate It is still moving mainly sideways, in the range of PLN 4.50-4.60. With such We have been dealing with this situation for almost a month.

KK

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