The Pound to Polish Zloty (GBP/PLN) exchange rate was trading steadily on Thursday due to the release of retail sales data out of the UK and mixed data out of Poland.
Earlier in the session, the Pound recovered from a near two-month low against the Zloty as data released by the Office for National Statistics (ONS) showed that UK retail sales increased more than forecast in October.
According to the ONS, UK retail sales increased by 0.8% on a month on month basis, a rally from the 0.4% decline seen in the previous month. On an annual basis retail sales increased by 4.3%. Economists had been forecasting for a monthly increase of 0.3% and a yearly rise of 3.8%.
Further gains for the Pound however were restrained as the data also increased investor concerns over falling prices and low inflation. The data showed that prices measured by the retail sales deflator fell at an annual rate of 1.5% last month, the lowest level seen since 2010.
‘We do need to keep a watchful eye on the downside risks but there is plenty of extra stimulus in the pipeline. Cheaper food and petrol prices are a boon for consumers that should help keep their confidence healthy and return some of the sparkle to UK growth next year,’ said Rob Wood, an economist from Berenberg Bank.
The Polish Zloty meanwhile advanced against the weakened Euro after data showed that industrial production in the nation continued to grow in October, but separate data showed that producer prices continued to fall.
According to Poland’s Central Statistics Office, industrial production increased by 3.5% on a month-on-month basis. The rise was below forecasts for a rise of 3.7%. On an annual basis however production climbed by 1.6%, beating forecasts for a figure of 1.4%.
Polish PPI rose to a seasonally adjusted -1.2%, from -1.6% in the preceding month.
Analysts had expected Polish PPI to rise to -1.2% last month.
The GBP/PLN exchange rate is likely to experience volatility due to the publication of Polish retail sales and unemployment data.
