PLN stronger at the end of the week, BGK on cooperation with the government

After a stormy start to the week, things calm down. The dollar slightly reduced its recent strengthening, even despite hawkish comments from American bankers. Plus after the sale A recovery is likely on Wall Street, which flows from the financial results of the Taiwanese company TSMC - the largest supplier of semiconductors in the world. In turn, the zloty benefits from information provided by Bank Gospodarstwa Krajowego, which intends to cooperate with the government to reduce Poland's borrowing needs.

BGK will cooperate closely with the government

The zloty clearly strengthened in the morning after Bank Gospodarstwa Krajowego announced close cooperation with the government in order to reduce Poland's borrowing needs. In its statement, BGK also mentions work in order to reduce the costs of public debt servicing by extending the scope of public finance consolidation. After this information appeared around 8 a.m., the zloty strengthened by approximately 1-2 groszy compared to the euro or dollar. It is worth noting that the USD/PLN pair was already close to the level of 4,12, while before the opening of markets in Europe it was even below 4,05. Of course, this low exchange rate is also influenced by the weakening of the American dollar, despite quite hawkish statements by American central bankers.

Fed representatives will speak

The Fed's Michelle Bowman indicated during yesterday's statement that progress toward achieving the inflation target has clearly slowed and perhaps even stopped. In her opinion, monetary policy is restrictive, but time may show that is not restrictive enough. In turn, Loretta Mester pointed out that the central bank should not rush into cutting interest rates, and the latest data give room to keep interest rates unchanged for a longer period of time. Given such words, the probability that rates will be reduced in June is really very small. Today we will be able to hear Bowman again, as well as Williams and Bostic.

It is worth noting that market sentiment improved due to the lack of escalation of the geopolitical situation and the publication of the financial results of TSMC, which is the largest supplier of semiconductors in the world. Theoretically, these results could suggest that Nvidia, which was responsible for much of the recent market boom, is also expected to report strong financial results for the past quarter.

A moment after 10:00 we pay PLN 4,0542 for the dollar, PLN 4,3295 for the euro, PLN 5,0562 for the pound and PLN 4,4616 for the franc.

Source: Michał Stajniak CFA, XTB