KBC Market Research Desk
KBC Bank
Currencies
EUR/USD
After a period of consolidation, the dollar became again better bid as a first Fed rate hike is coming closer and risk‐on sentiment was USD positive too.
EUR/GBP
Sterling remains well bid. UK eco data and BoE comments suggest that a BoE rate hike at the turn of the year is possible. Euro weakness weighs on the currency pair too.
USD/JPY
USD/JPY dropped temporary as the Chinese equities sold off.
However, the pair found soon a bottom as global sentiment on risk improved and as US interest rates trended higher.
EUR/CZK
The Czech koruna returned closer to the central bank’s (CNB) floor of EUR/CZK 27 as markets scaled back chances that the CNB will ease policy further.
EUR/PLN
The zloty corrected after the start of the ECB’s QE, while the euro rebounded across the board. The outcome of the Presidential elections was slightly zloty negative too. The decline of the zloty halted after the Greek debt deal.
EUR/HUF
The Hungarian forint rebounded in line with other regional currencies. Fears for further central bank easing might have been a slightly negative too. The Greek debt deal improved sentiment for regional currencies including the forint.
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.
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