The issue of tariffs between the US and China has resulted in significant decreases in most of the world's markets. Currency market's situation remained calm compared to events on the share market. Strong depreciation of the Turkish lira. The zloty is incurring some losses but to a limited extent. The EUR/PLN pair close to the 4.23 level.
The Polish currency is stronger due to the lack of the dollar's appreciation. However, the market's sentiment deterioration caused by global trade issues limits its potential growth. Interest rates in the UK were unchanged, but two members wanted to increase them.
Weaker dollar after the Jerome Powell's press conference (the President of Fed). Worse data from the eurozone - PMI and Ifo indexes close to yearly lows. Fed that appeared less hawkish than expected, supports the zloty, but it is mainly visible on the USD/PLN pair. The euro remains in the range of 4.22-4.23 PLN.
Retail sales in Poland rose by 7.9% year-on-year in February, exceeding market expectations. However, this was not enough to strengthen the Polish currency. The FOMC's message, which may be hawkish, on the future level of interest rates may cause additional pressure on the zloty.
Tuesday's session supported the dollar, which may decrease the US currency appreciation scale even in the case of a relatively hawkish statement from the Fed. The Fed's message will also be important for the zloty.
Worse than expected data from the eurozone, showing deterioration in sentiment and a gaining dollar, exert negative pressure on the Polish currency. Tomorrow's message from FOMC may further weaken the zloty.