A week marked by inflation and earnings season, the PLN rate is stabilizing

On Tuesday noon, the zloty stabilizes against the euro and the dollar, after strengthening against both currencies in recent days. At the same time, it loses against the Swiss franc and the British pound following the strengthening of both of these currencies in the global markets.

At 13:02 you had to pay PLN 4,4448 for the euro, i.e same as yesterday at the end of the daywhen the single currency became cheaper by PLN 1 At that time, the dollar cost PLN 4,0388, after an earlier morning drop to PLN 4,0215 and against PLN 4,15 last Thursday.

USD / PLN daily chart. Source: Tickmill

Courses GBP/PLN is rising today by PLN 2 to PLN 4,5816. The pound is also more expensive in relation to other currencies, after the data from the British labor market published in the morning once again showed that the Bank of England will be forced to raise interest rates further.

On Tuesday in global markets the Swiss franc is also strengthening, which translates into an increase in quotations of the CHF/PLN pair by almost PLN 2 to PLN 4,5115.

The general sentiment towards the Polish currency, despite its observed weakening against the pound and franc, remains good all the time. However, about how its quotations will develop in the coming days, The US inflation data released on Wednesday and Thursday will be crucial. This will be the main event of the week in the financial markets and therefore it should have an indirect impact on the zloty.

The lower the inflationary pressure in the US, the less will be the pressure for further interest rate hikes by the US Federal Reserve, which will have a negative impact on the dollar and positive impact on stock market sentiment. And this will be conducive to the strengthening of the domestic currency. And vice versa. A negative surprise from the described inflation data would increase risk aversion, at the same time becoming a strong impulse for zloty weakening. In such a scenario, the return of the zloty to the last week's extremes, i.e. the return of EUR/PLN to PLN 4,50, USD/PLN to PLN 4,15, and CHF/PLN to PLN 4,62, cannot be ruled out.