Tuesday’s economic publications have seen the Pound slump against the Polish Zloty after British data disappointed and Polish data impressed.
The Pound Sterling to Polish Zloty exchange rate is currently trending in the region of 5.3075.
After having softened to extremely low levels against the majority of its most traded currency peers in the build-up to the Scottish referendum Sterling posted huge gains after its conclusion. A victory for the Unionists initiated a rapid upsurge for the Pound against all sixteen of its major competitors. The increased demand opened some attractive selling positions, however, and Sterling was quickly brought back down to Earth as traders opted to lock in their profits.
Polish data publications have been few and far between so the majority of the Zloty movement has been dictated by foreign currency changes. A bullish US Dollar had initiated a Zloty downtrend and last Wednesday’s mixed data wasn’t enough to curtail the general downtrend. Although the yearly inflation rate met with the forecast figure having printed at -0.3%, that is still an awful long way off their target 2.5% inflation. Balance of Trade and Current Account improved upon the market consensuses.
The Pound Sterling to Polish Zloty exchange rate has hit a low today of 5.2974.
Tuesday’s British economic data has left a lot to be desired and has certainly contributed to Sterling softness against many of its rivals. The Loans for House Purchase report was expected to increase from 42715 to 42913, but the actual data showed a fall to 41588. Public Finances may have improved upon the previous figure of -7.2 billion, having printed at 1.6 billion, but was unable to meet with the market consensus of 6.0 billion. Public Sector Net Borrowing showed an unwanted advance from -0.5 billion to 10.9 billion, eclipsing the median market forecast of 10.2 billion. Public Sector Net Borrowing ex Interventions also increased from 0.3 billion to 11.6 billion, and similarly Public Sector Net Borrowing Central Government increased from -2.5 billion to 3.1 billion.
Polish data on Tuesday was far more impressive than that of the UK. Year on year Retail Sales was forecast to decline from 2.1% to 1.3%. The actual data, however, was a smaller declination to 1.7%.
Forecast for the Pound to Zloty Exchange Rate
A particularly sparse economic calendar this week contains very few British domestic data publications, none of which hold any particular significance in terms of provoking wider market movement. One important economic event to watch for will be on Thursday. Bank of England Governor Mark Carney will be giving a speech in Wales. A hawkish speech will set the ball rolling for a bullish Sterling, but most speculate that it will be reasonably dovish which will hurt Sterling significantly.
There are no more Polish data publications for the remainder of the week. This, therefore, means that movement will be dictated by changes in foreign currencies and geopolitical issues.
The Pound Sterling to Polish Zloty exchange rate has reached a high today of 5.3320.
UPDATE
The Pound Sterling to Polish Zloty exchange rate is currently trending in the region of 5.3271.
With a complete lack of economic data for both the UK and Poland on Wednesday the Pound to Zloty exchange rate has experienced very little movement. It is likely that the currency pairing will continue in the same vain unless there are any dramatic changes in foreign currencies or geopolitical developments.
