GDP data from Great Britain better than expected, EURUSD is looking for direction

During yesterday's session, we observed a slight strengthening of the American currency, which led to the EURUSD rate retreating below 1,0670. Powell's evening speech did not bring any revelations, although the Fed chairman's statement was somewhat closer to what other members of the Federal Reserve have said recently. Powell said that the Fed is not closing the door on a possible increase in interest rates, but as usual, he added that the situation in the economy is monitored on an ongoing basis and that the bank sees a scenario assuming a soft landing.

Negative sentiment on the Eurodollar

Looking technically at EUR/USD chart, the quotations retreated yesterday below the key short-term support zone at 1,0670, but this morning the declines were erased and the price returned slightly above the mentioned zone. The key to the future direction will be whether the price manages to stay above 1,0670 or fall below. If negative sentiment persists declines towards 1,0600 are possible, where there is another important support. On the other hand, closing the day above 1,0670 may provide a chance for a move towards 1,0750 after the weekend.

GDP from Great Britain better than expected

Friday morning goes without any major changes on the Forex market. At 8 a.m. we learned about... CBA from the UK that dropped out better than expected. However, the data on industrial production surprised negatively. In response to the readings, the pound fell, but the losses were quickly erased. On a daily basis, the pound is losing less than 0,1% against the US dollar. As for the next hours, the macro calendar is basically empty.

In the afternoon, we will learn the data from the University of Michigan from the USA (16:00 p.m.), and in the meantime, members of central banks will speak: Logan and Bostic from the Fed and the president of the ECB, Christine Lagarde.

The zloty strengthened

Looking at the Polish zloty market, our national currency is trading flat before noon. However, in recent days the zloty has strengthened, which was related to the surprising decision to maintain interest rates by the Monetary Policy Council (despite the expected reduction of 25 bp). In the medium term the zloty exchange rate may depend on the direction of EUR/USD, which is not entirely clear at the moment. Possible increases in EUR/USD may lead to the strengthening of the zloty, while if the main currency pair returns to declines, the zloty may start to lose. On Friday after 11:00 we will pay PLN 4,1470 for the dollar, PLN 4,4250 for the euro, PLN 4,5950 for the franc and PLN 5,0670 for the pound.

Source: Currency Commentary, Łukasz Stefanik, XTB