The flight of capital across the ocean has led to a weakening of the local currency. This shift was accompanied by a noticeable depreciation in the cryptocurrency market and an unexpected strengthening of the pound despite truly weak data.
The Polish zloty fared badly on Monday. Despite a virtually empty macroeconomic data calendar, which theoretically should indicate a relatively calm day, the US dollar strengthened against the euro once again. For the first time in over two weeks, the main currency pair approached the level of 1.08. This large capital flight across the ocean cost the zloty more than two groszy in value against the euro and four against the dollar. Indications that the move was triggered by external factors include similar reactions from the Hungarian forint and the Czech koruna, ruling out the possibility that the zloty’s weakness was due to internal factors.
On the cryptocurrency market, bitcoin was attacking levels of $70,000 just yesterday. Interestingly, during the election campaign, Donald Trump began to speak much more favorably about cryptocurrencies than before. As a result, the image of Republicans supporting the crypto environment and Democrats on the other side is beginning to take shape. Some commentators even try to link yesterday’s drop from almost $70,000 to $67,000 with Kamala Harris catching up in the polls. On the other hand, there is the issue of liquidation of some bitcoins owned by the US. From the wallets seized after the Silk Road exchange, the equivalent of almost $2 billion was transferred yesterday. Such a large one-off package hitting the market could lead to a much deeper correction than the current $3,000. Perhaps this is what bitcoin owners feared and decided to sell them.
Yesterday, we saw a package of data from the UK. It started with less important ones: money supply, which increased by 0.5%, and accepted mortgage applications, which were slightly less than expected. Theoretically, the most important should be retail sales according to the Confederation of British Industry (CBI). The data turned out to be significantly weaker than expected. Sales once again dipped, looking at survey results. However, looking at the market reaction, one might get the impression that investors saw different data. Although the pound momentarily lost value after publication, it soon bounced off the peaks from around July 10 and began to fall. In the end, despite weak data, the pound finished the day markedly stronger against other currencies.
Today in the macroeconomic data calendar, pay attention to:
2:00 PM – Germany – consumer inflation,
4:00 PM – USA – consumer confidence index – Conference Board.
Maciej Przygórzewski – Chief Analyst at InternetowyKantor.pl and Walutomat.pl
Source: https://ceo.com.pl/kapital-ucieka-z-europy-oslabienie-zlotego-i-korekta-na-rynku-kryptowalut-57933
