Headlines

Zloty regains some ground after post-election losses

Be aware of potential contagion from falling Russian rouble and Turkish lira

After hitting a two-month low against the euro earlier this week, the Polish zloty regained some ground and strengthened by about 0.6% yesterday. Rather than any specific fundamental reasons, the technical factors might have been in play as the zloty bounced-off a resistance at EUR/PLN 4.15. Elzbieta Chojna-Duch, a member of the Polish Monetary Policy Council, said yesterday the weakening of the zloty may only be temporary as the footing of the economic growth remains firm. This is in line with our view, too. We see room for prospective further losses of the zloty as limited. Elsewhere in the broader region, trading has been quite volatile lately. The Russian rouble has weakened by about 4% in the last five sessions as the US dollar generally strengthened and the oil price fell by nearly 5%. Moreover some negative spill-over effects might have come from broader emerging markets universe the Turkish lira has been under pressure ahead of upcoming parliamentary elections (held on June 7th).

Today, the regional calendar is thin. The only interesting release was Hungarian unemployment rate for April which came out in line with market expectations (7.6%) and had therefore no impact on trading. Tomorrow’s revisions of GDP growth in Poland and Czech Republic that will be released along with the details will draw more attention. Nevertheless, especially regional forex markets should watch closely other emerging markets as some of them might generate unwelcome contagion.

This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD clings to gains above 1.0750 after US data

EUR/USD clings to gains above 1.0750 after US data

EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.

EUR/USD News

GBP/USD declines below 1.2550 following NFP-inspired upsurge

GBP/USD declines below 1.2550 following NFP-inspired upsurge

GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.

GBP/USD News

Gold struggles to hold above $2,300 despite falling US yields

Gold struggles to hold above $2,300 despite falling US yields

Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.

Gold News

Bitcoin Weekly Forecast: Should you buy BTC here? Premium

Bitcoin Weekly Forecast: Should you buy BTC here?

Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.

Read more

Week ahead – BoE and RBA decisions headline a calm week

Week ahead – BoE and RBA decisions headline a calm week

Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.

Read more

Majors

Cryptocurrencies

Signatures