After reaching a three-month high of $1.3293 during the first week of August, the EUR/USD experienced a corrective movement and declined all the way to $1.2700. The US dollar, however, gained in value after another round of worse-than-expected macro news from the American economy.

And there are still no signs that the world’s largest economy will bounce back any time soon. Unemployment claims for the week ending August 20 reached 500,000, the highest level since November 2009, while the Philadelphia Federal Manufacturing Index declined to -7.7 points, the lowest level since July 2009.

As stock markets declined, so did the EUR/USD, but the $1.2730 level remains a strong support; if broken, the market should reach $1.26. The złoty also dropped on global market falls.

Recently released statistics show that the Polish economy is not growing particularly quickly, and that inflation will not be a problem in the near future. While corporate sector wages and industrial output declined on a monthly basis, they still rose on the year.

Poland, however, remains one of the strongest economies in the European Union.

The EUR/PLN finished the week ending August 20 at zł.3.98, the same as it was two weeks previous. The appreciation of the US dollar caused the USD/PLN to increase all the way to zł.3.13 (zł.2.99 two weeks before), and as WBJ went to press it was on track to reach its monthly high of zł.3.1460.

Adam Narczewski, X-Trade Brokers Dom Maklerski SA