Good data from the Chinese economy and the perspective of prolonging negotiations on trade between the US and China maintain a positive sentiment. The zloty is still under pressure from weak data from the eurozone and is depreciating. The euro is close to the 4.34 PLN boundary, and the dollar tested levels close to 3.85 PLN.
Weak data from the eurozone and higher than expected core inflation from the US pushed the Treasuries yields higher and boosted the greenback. The NBP data on Polish current account were weak but not as bad as expected. The zloty remains under pressure and the USD/PLN is approaching 3.84 level.
Relatively good sentiment in the broader market finally helped the euro. The British agreement with the EU will only be possible a few days before the cut-off date of leaving the Community. The zloty remains weak, both against the euro and the forint.
Apart from a speech by Prime Minister Theresa May in the British Parliament, the last hours on the market were calm. The Polish currency pared the losses incurred in the morning and fell to the 3.83 boundary. The EUR/PLN remains in the range of 4.32-4.33.
Risks for another shutdown in the US are lower, and trade war may be averted between the States and China. Better market sentiment is not seen in Europe. The zloty remains weak and is close to the lowest level to the dollar since Spring of 2017.
Mounting pressure both on the pound and the euro is pushing the dollar higher. Michel Barnier, chief EU Brexit negotiator has excluded to open the withdrawal agreement. The zloty remains weak and the CEE region is much more exposed to the recent eurozone slowdown than other EM countries.