On Friday, December 16, 2022, exchange rates strengthen against the zloty. The pound is the strongest today and gains 0.33%, or almost 2 pennies. The dollar and the euro are also in the black, gaining 0.16% and 0.20% respectively. Check how the exchange rates are developing before the end of today’s session.
The dollar is close to PLN 4.42 again
The euro is approaching the 200-day MA
The pound exchange rate partially makes up for yesterday’s losses
currency pair
Name
Course
Quotations of the currency pair during today’s session
EUR/PLN euro 4.6950 +0.20% USD/PLN dollar 4.4170 +0.16% GBP/PLN pound 5.3860 +0.33%
The euro exchange rate is approaching the round barrier of PLN 4.70
During today’s session, the euro exchange rate is moving above the reference point and approaching PLN 4.70. In the first half of December, the EUR/PLN pair stabilizes below the 200-day moving average (MA). Analyzing the earlier move from November, we see that the EUR/PLN exchange rate broke the 50-day EMA and the key support (green), which assumed further declines. Due to the recent consolidation, the EUR/PLN exchange rate is waiting for an impulse to set a new direction of movement. In the case of increases, the pair will have to deal with the moving averages first, while in the case of decreases, the nearest support is at PLN 4.6500.
Euro quotes. The EUR/PLN currency pair on 12/16/2022 The ECB raised rates by 50 basis points at its December meeting, and President Christine Lagarde told investors to prepare for a long-term campaign of similar moves to quell the worst inflation in the history of the euro zone. “Anyone who thinks this is an ECB pivot is wrong. We should expect to raise interest rates at a rate of 50 basis points for some time. We have more things to do, we have a longer way to go, and we have a long-term game ahead of us,” Lagarde said.
The dollar is up for the second day in a row
The dollar has been falling since rebounding from the round level of PLN 5.00. The US currency has twice tried to break through the psychological barrier, but to no avail. Today, however, the USD/PLN exchange rate is gaining 0.16% and making up for some of the recent losses incurred in the first half of December, during which it broke the 200-day MA and the support at PLN 4.5270. Analyzing the earlier larger move, the USD/PLN exchange rate set a double top pattern in October. The breakout of the level of PLN 4.8020 combined with the breakout of the key support (green), which created a convergence point on the chart. This was an additional signal for the declines, during which the 50-day EMA was also broken.
On December 14, the last FOMC meeting of this year took place, during which it was decided to raise interest rates by 50 basis points. This brought the federal funds rate to its highest level since December 2007. The December decision was made unanimously and was in line with the expectations of the market and economists.
Pound strongest at the end of the week
The GBP/PLN exchange rate is gaining 0.33% today, which is almost PLN 0.2. Thus, the British currency makes up for losses after yesterday’s significant decline and returns to the increases initiated by the rebound from the support zone 5.2710 – PLN 5.3200. However, the British currency needs to quickly return to the 50-day EMA to give another signal to the bullish side of the market. By decision of the Monetary Policy Committee (MPC), the reference interest rate of the Bank of England was raised from 3.00 percent. to 3.50 percent, i.e. by 50 basis points. The decision was made by a vote of 6 to 3 and was in line with market expectations.
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