WSE: After start on Wall Street
The behavior of currency pairs EURPLN and USDPLN leaves no doubt that some of today's power of the Warsaw market and current approach to the region 1,850 points by the WIG20 is an element of improving sentiment towards Polish assets. The last five hours on the zloty support relative strength of the WIG20 compare to European markets. In other words, there would be no increases in the WIG20 by 0.8 per cent, if not a similar decline in EURPLN and USDPLN rates. As always with such a strong currency movements, there is a risk of return, which would have seen by investors.
At the end of the day it will be important, however, closing above the trend line, which will change the balance of power on the graph and will allow to look above the level of 1,850 points on the WIG20. Risks on the last line seem to be well defined - downward pressure from German market, where the DAX is testing daily minima, potential withdrawal on Wall Street and profit taking on the zloty.