__cfduid
Valid: 29 days
It helps us protect the website from threats such as hacker attacks. Used by Cloudflare to recognise trusted network traffic.
__lc_cid
Valid: 3 years
Necessary for proper functioning of the chat available on the website.
__lc_cst
Valid: 3 years
Necessary for proper functioning of the chat available on the website.
rc::a
Valid: It does not expire
Cookies to correctly distinguish between human and bot-generated traffic.
rc::b
Valid: 1 session
Cookies to correctly distinguish between human and bot-generated traffic.
rc::c
Valid: 1 session
Cookies to correctly distinguish between human and bot-generated traffic.
NID
Valid: 6 months
Records a unique number to recognise the device you are using. It is used for advertising.
_ga
Valid: 2 years
Registers a unique user number to collect statistical data about how you use our website.
_gat
Valid: 1 day
Used by Google Analytics to reduce queries. Reduces the amount of statistical data collected.
_gid
Valid: 1 day
Registers a unique user number to collect statistical data about how you use our website.
yt-player-bandwidth
Valid: It does not expire
Determines the best video quality based on your device and the Internet connection used.
yt-player-headers-readable
Valid: It does not expire
Determines the best video quality based on your device and the Internet connection used.
Information on the planned acceleration of imports of agricultural goods from the USA by China supports the continuation of positive sentiment in the market. The dollar is recording limited changes, but its gradual strengthening may affect the zloty.
The dollar pares losses
Friday started with positive reports on the US-China trade agreement. Bloomberg reported, citing anonymous sources, that after talks in Hawaii between the USA and Chinese representatives, the Asian superpower plans to speed up the purchase of agricultural products, in line with the signed first phase of the trade agreement.
The pandemic caused China to fail to comply with the agreement to import goods from the USA, but now China was to declare the purchase of soya, corn and ethanol, among others. Such information supports positive sentiment today, maintaining increased demand for more risky asset classes.
At around midday, the dollar remains at the level of yesterday's closing. The US currency is still relatively weak in the context of the last month, but for about a week and a half, the dollar has been gradually recovering. Yesterday afternoon, the EUR/USD exchange rate fell below 1.12 for the first time in two weeks.
That will not help the zloty
If the dollar continues its appreciation path, it may increase the supply pressure on emerging countries' currencies, including the zloty. The Polish currency was quite strong on Friday morning, even compared to other emerging country currencies, with only limited changes. The USD/PLN exchange rate still remains below the 4.00 boundary (around 3.98 at midday), and the EUR/PLN is in the range of approx. 4.44-4.46, more or less the same was observed in the previous few days.
The zloty might also have been supported by data from the Polish economy. According to the Polish Central Statistical Office (GUS), industrial production in May increased by 10.1% on a monthly basis, which is 1.2 percentage points above expectations. Nevertheless, the overall state of the industry remains disastrous, production was 17% lower than in May last year, although here too the reading was slightly higher than expected - the consensus showed a decline of 18%.
Ultimately, however, the Polish currency will follow the trend prevailing in the broader market, and domestic data will have limited impact. The dollar is currently fluctuating at 1.12 for the EUR/USD, and the boundary of 1.24 for the GBP/USD pair has also been exceeded (the lowest since June 1st) and the continuation of this trend may weaken the zloty in relation to the main currencies.
Subscribe to our currency newsletter
See also:
The dollar shows signs of activity (Daily analysis 18.06.2020)
Stronger dollar, weaker zloty (Daily analysis 17.06.2020)
Strong growth in sales in the USA (Afternoon analysis 16.06.2020)
Plans for spending in the US worth trillions of dollars (daily analysis 16.06.2020)
Attractive exchange rates of 28 currencies
Live rates.
Update: 30s
Open your free account today
Save your time and money. Create an account for free and discover how much you can gain. Join us today, and start using attractive currency services.
Create free account