Weekly Currency Brief

3

0
Złoty the strongest since mid−September
Fri, Nov 13 2009, 14:41 GMT
by Adam Narczewski
X-Trade Brokers, XTB
Stock markets regained ground and attacked this year’s highs but this past week currencies reacted also to other factors. Last weekend on the G20 meeting, the International Monetary Fund (IMF) stated that the dollar is overvalued, at the same time confirming that the American currency is still the main funding currency for carry trade transactions (those in which we borrow “cheap” currency, buy “expensive” currency and we invest it in stocks). The EUR/USD reacted to the news advancing to $1.5048, close to this year’s high (1.5063). During the second part of the week stock markets declined and so did the EUR/USD finishing the week close to the level it started - $1.4880.
The Złoty, on the other hand, kept appreciating throughout the course of the whole week. Decreasing risk aversion (during the first part of the week) due to increasing stock markets was definitely helping emerging markets currencies like the Czech Crown, Hungarian Forint and Polish Złoty. When equities began its corrective movement the Złoty kept gaining. Probably investors decided that local currencies, especially the Złoty, are undervalued to other emerging currencies like Brazilian real. At the same time, the big Swiss investment bank, UBS, provided its forecast that the Złoty is heading towards the zł.4.0 level against the Euro. The news pushed the EUR/PLN towards its lowest since mid-September: zł.4.1015.
Published on
Fri, Nov 13 2009, 14:41 GMT
Archive
- Złoty the strongest since mid-September
Published On Fri, Nov 13 2009, 14:41 GMT
- Złoty remains strong
Published On Fri, Oct 23 2009, 14:21 GMT
- Interest rates in the spotlight
Published On Fri, Oct 9 2009, 13:40 GMT
- Eureko's dividend low impact?
Published On Fri, Oct 2 2009, 14:14 GMT
- Złoty declines on increased risk aversion
Published On Fri, Apr 24 2009, 14:06 GMT
[ View All ]
X-Trade Brokers Dom Maklerski SA
| Robert.kosowski@xtb.pl; 00-876 Warszawa
http://www.xtb.com/ | Robert.kosowski@xtb.pl
Legal disclaimer and risk disclosure
X-Trade Brokers Dom Maklerski S.A. does not take responsibility for investment decisions made under the influence of the information published on this website. None of the published information can be treated as a recommendation, disposition, promise, or guarantee that the investor will achieve a profit or will minimize risk using the information published on this website. Transactions including investment instruments, especially derivatives using leverage, are in its nature speculative and can provide both profits and losses that can exceed the initial deposit engaged by the investor.
Related reports
Intraday Forex Technical Report - U.S. Update: More dollar corrections by FXstreet.com Independent Analyst Team
Fri, Nov 20 2009, 16:15 GMT
Daily Market Report - There are indications that the market is reducing its exposure to risk by Wells Fargo Investments, LLC
Fri, Nov 20 2009, 15:19 GMT
Fundamental Currencies Comments - Dollar climbs vs. majors by ecPulse.com
Fri, Nov 20 2009, 15:15 GMT
Currency Majors Technical Perspective by FXstreet.com Independent Analyst Team
Fri, Nov 20 2009, 14:22 GMT
The Daily Currency Analysis - TraderPlanet Daily Currency Analysis by TraderPlanet.com, LLC
Fri, Nov 20 2009, 14:10 GMT
cee, eurusd
View All
Related content
Forex: EUR/USD ends week with moderate losses
FXstreet.com | Fri, Nov 20 2009, 21:27 GMT
ForexLive New York wrap-up: EUR/USD bounces after 1.4800 attack
Forex Live | Fri, Nov 20 2009, 20:58 GMT
Forex: EUR/USD rebounds at 1.4875 and falls to 1.4835
FXstreet.com | Fri, Nov 20 2009, 18:33 GMT
Forex: EUR/USD finds resistance at 1.4860, back to 1.4820
FXstreet.com | Fri, Nov 20 2009, 15:47 GMT
US Regional and State Unemployment Rates for Oct-STATS
Dow Jones | Fri, Nov 20 2009, 15:29 GMT
cee, eurusd
View All
The Advisor Weblog » Eur/Usd technical perspective
Fri, Nov 20 2009, 12:14 GMT
FX Market Readings » Expected market moves for week end
Fri, Nov 20 2009, 07:47 GMT
The Disciplined Trader » EUR/USD consolidation will lead to break out - The question is “which way”
Thu, Nov 19 2009, 15:58 GMT
FX Market Readings » Less rise and more drops are seen
Thu, Nov 19 2009, 14:46 GMT
The Advisor Weblog » Eur/Usd approaching to key support zone
Thu, Nov 19 2009, 14:46 GMT
cee, eurusd
View All
Technical analysis for EUR/USD, GBP/USD - Page 5 - Forex Forum - FXstreet.com
Fri, Oct 10 2008, 12:07 GMT
Yellowlion's Daily EURUSD - Page 6 - Forex Forum - FXstreet.com
Fri, Oct 10 2008, 12:07 GMT
Elliott charts with Grega H. - Page 2 - Forex Forum - FXstreet.com
Fri, Oct 10 2008, 12:05 GMT
Technical analysis for EUR/USD by AceTrader - Forex Forum - FXstreet.com
Fri, Oct 10 2008, 12:03 GMT
The technical analysis of majors - Page 3 - Forex Forum - FXstreet.com
Fri, Oct 10 2008, 12:02 GMT
cee, eurusd
View All
FX Instructor Live Trading Room
Mark De La Paz | Mon, Nov 23 2009, 11:00 GMT 
US Pre-Market Open
Ed Ponsi | Mon, Nov 23 2009, 13:00 GMT 
US Session Open
Ed Ponsi | Mon, Nov 23 2009, 14:30 GMT 
Weekly Webinar: 1st on Forex - The Week Ahead
Jerry Furst | Mon, Nov 23 2009, 17:00 GMT
Trading Day's Live Wrap Up - With Extra Educational Contents
Valeria Bednarik | Mon, Nov 23 2009, 22:00 GMT
cee, eurusd
View All
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our
user agreement. Please read our
privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.