The Polish Zloty and Hungarian Forint remained under selling pressure from overseas markets, as investors awaited the minutes of the Apr 26-27 Federal Open Market Committee meeting, released today. The hawkish message delivered through the minutes of the meeting weighed on the entire markets of the emerging economies.
The recently published FOMC Minutes strongly advocate a rate hike as early as in June if economy develops as expected and markets remain calm. However, the zloty would have slid further had the fairly good employment and wage data for April not been published yesterday.
Today, zloty’s route is marked by developments in the core markets and flow of Polish macro data that resumed with publication of retail sales and industrial production in April. Meanwhile, the Fitch Ratings verdict, due tomorrow would case for a sideline influence in the Polish currency.
"In this case, markets mostly bet on an unchanged rating (BB+ with positive outlook), or Hungary not obtaining an investment grade," KBC said in a research report.
