The market's nervousness will probably be resolved after the official data about the jobs market hits the wire. Solid readings from Germany. The franc is significantly weaker to the euro and the dollar. The zloty's weakness is partly due to global sentiment towards EM currencies and partly to local turmoil.
The ADP report missed the forecast. As a result, the dollar dropped against the euro and other major pairs. The zloty exploited a heightened probability that the interest rate hikes may be deferred. The Polish currency recouped the earlier decline.
The interview with Lockhart for “The Wall Street Journal” caused significant changes on the FX market, but the reaction might be overstated. More data from the US – ADP and the ISM readings. The zloty significantly weakened not only to the dollar but also to the euro.
The EUR/USD was steady before the key reports on the US labor market. Spain's economy is getting better. The zloty extended decline.
The US data published yesterday should not change the Fed's approach. The rouble is still under pressure. The AUD rebounded after the central bank announcement. Polish currency remains stable, but after solid PMI one might have expected some appreciation.
The zloty has returned to the hikes from July. As a result, the price competitiveness of the export fell almost on all markets. Such unfavorable tendencies are visible on the Scandinavian and Central-European markets. The Polish currency remains relatively strong in a several years perspective.