The market has almost completely ignored inflation numbers over the past two days within the Central and Eastern Europe (CEE) region and the global story appears to remain the focus, notes Frantisek Taborsky, FX analyst at ING. .
Falling EUR/USD may keep pressure on CEE currencies
“Today will not be much different. The calendar offers current account numbers for September in Poland, the Czech Republic and Romania. Last month, these produced a positive surprise in the Czech Republic and a negative one in Poland, which the market could observe this time to see if it was an isolated case or a trend reversal.”
“However, the main story remains the decline of EUR/USD, which should keep pressure on CEE currencies. We remain bearish here. If anything, we see PLN outperforming the region, but perhaps later rather than sooner , although yesterday EUR/PLN bounced at 4,360, which seems to be a key level.”
“While the HUF seems to be a separate story, the PLN/CZK could catch the market’s attention given the bounce from 5,800, which seems to be a limit to the PLN’s weakness here and could gain some support.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
