Warsaw, 09.01.2015 (ISBnews / KantorOnline.pl) – “A blow in the back” for the zloty was yesterday’s surprising decision the Swiss National Bank to lift force for more than three years minimum threshold franc exchange rate to the euro.
Swiss currency rate within a few minutes soared to never unquoted Level 5 zł per franc, temporarily suspending the rotation of our currency interbank market. Also in relation to other currencies underlying gold lost by an average of 10 cents.It is best started year for gold, which attempts to make up for the losses of the last month, due to a less than favorable sentiment about the European economy and thus falling in the EUR / USD, are doomed to failure. The greater havoc around the golden caused panic in global markets after the SNB absolutely unexpected decision to withdraw from defending the minimum threshold exchange franc to the euro at 1.20. This movement is so incomprehensible that until recently swiss assured that this bastion of defense against the franc appreciation is not to move it. What is true Swiss National Bank announced yesterday also lower the interest rates by another 50 basis points to -0,75proc, but that did not calm the situation.
The share broad stream flowed in the direction of the franc, and a short while the EUR / CHF plunged to 0.9, finally returning to the level of 1.02. However, little is likely to return to the vicinity of 1.20, in particular, we have that in the implementation of the European Central Bank buying of assets, which is unlikely to strengthen the common currency. It’s also possible that in the current situation, the ECB will once again have to rethink their moves and such. Postpone the introduction of quantitative easing at the end of the quarter.
Is that what they wanted Helvetians? It’s hard to say. Markets for a long time will discount their decision yesterday, reflecting on their motives. Even more shaky, SNB decision resulted in emerging markets. Price franc in our market to Level 3, 57 at the opening rapidly above 4 zł, and reached the top of the historical level of more than 5 zł. Finally, by the end of the franc traded was in a very wide range of 4.10-4.25.
panic dictated by rapid outflow of capital from our market, caused a sell-off of our currency also in relation to other major currencies by about 10 cents. Also helped the Golden reading GUS Thursday December inflation at -1 per cent y / y., Which will increase the pressure on the MPC to cut interest rates quickly. At the end of yesterday’s session cost 3.72 zł dollar, the euro and the Swiss franc 4.31 4.20.
Today’s session will also certainly was marked by very high volatility. The market will try to find a new stable level for the franc, because the levels of the CHF / PLN before a decision a long time the Swiss National Bank will not see the obvious. In the near future it will be a level of around 4 zł per franc. Major fluctuations to be expected also today USD / PLN. Here zloty should try some losses, coming in around 3,67-3,69 per dollar.
His “5 cents” to the trends in the foreign exchange market situation today can make a rich calendar of the macroeconomic environment. Among the most important, in the chair. 11: 00 we will read HICP inflation from the Euro Zone (expectation: -0.2 per cent m / m, -0.2 per cent y / y). In the afternoon we will see the US CPI inflation for December (consensus: -0.4 per cent m / m) as well as data on industrial production in December (expected a decline of 0.1 per cent m / m). 15:55 At the end of the index will be published at the University of Michigan (forecast 94.1).
Damian suburbian, Chief Dealer FX KantorOnline.pl
(ISBnews / KantorOnline.pl)
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