The euro zone awaits the ECB decision
U.S. forces carried out "another series of self‑defence attacks on numerous targets in Iran", the U.S. Central Command announced.
"CENTCOM forces carried out attacks on Iranian military surveillance systems, communication systems and air‑defence sites across Iran," the official statement read.
"Marine Corps, Air Force and Navy units fired precision munitions that posed a threat to U.S. forces and international commercial vessels transiting regional waters," added the statement.
Available information indicates that the described escalation is presented as a "response to Iran’s unjustified and continuous aggression".
"U.S. forces remain alert, ready to act and capable of delivering a lethal strike," it was stated.
Read more about the latest exchange of fire in the Middle East in the article: Will oil prices shoot to $200 a barrel? Another "surprise" in the fuel market after Middle East attacks
With weakening prospects for a settlement between the conflict parties, experts increasingly focus on other factors affecting financial markets.
Marcin Kiepas, Tickmill Europe analyst, explained how recent events impact the USD/PLN rate.
The situation in the Middle East seems to be escalating, which could translate into rises in USD/PLN.
I do not expect a strong move, however. Markets have already somewhat acclimated to Iran reports, just as they did months ago with Ukraine reports.
From the perspective of USD/PLN formation, a much more important factor is now the issue of inflation and U.S. interest rates rather than the Middle East.
The European Central Bank will announce its interest‑rate decision for the euro zone on Thursday.
Marcin Kiepas forecasts that the ECB will raise rates by 25 basis points.
This stems from the ECB’s great caution, fearing that the current euro‑zone inflation above target and above rate levels will hit inflation expectations and lead to further future growth.
Therefore the ECB will tighten monetary policy even though such a decision will hit the already weak economic growth.
"The June ECB decision should already be fully discounted by the market. I do not expect it to trigger a lasting and stronger reaction on EUR/USD and EUR/PLN," he added.
Source: Trading Economics.
Also read: Dollar on a long path to 4 PLN? Expert issued forecasts for USD/PLN and EUR/USD. "The dollar may gain"
See also: Will the dollar surprise again? Expert issued a forecast for USD/PLN and EUR/USD. "I find it hard to believe there will be no more fires"
Dollar and euro rates on Thursday, June 11
The dollar to zloty rate on Thursday, June 11 is at 3,68 PLN.
Chart. Dollar to zloty rate (USD/PLN)
Source: Trading Economics.
The euro to dollar rate reaches 1,15 USD.
Chart. Euro to dollar rate (EUR/USD)
Source: Trading Economics.
The euro to zloty rate hovers around 4,24 PLN.
Chart. Euro to zloty rate (EUR/PLN)
Source: Trading Economics.
Also read: Dollar before a chance to break out? Expert: "Capital will flow back to USD"
See also: Dollar before a "nervous and dynamic" move, euro awaiting a drop? Expert issued a forecast for USD/PLN and EUR/USD
Sources: Bloomberg, U.S. Central Command.
