EUR/PLN seen losing further ground – Danske Bank

Kristoffer Lomholt, Senior Analyst at Danske Bank, sees the cross risking further pullbacks in the next months.

Key Quotes

“In Poland, the zloty has been weakening somewhat in the wake of the Wednesday’s fairly dovish signals from the central bank”.

“We think that EUR/PLN may trade on a soft note in the next few months as political uncertainty rise in Europe in the run-up to key elections in Netherlands and France”.

“In general, PLN is quite sensitive to political risks in the wider EU given the dependence of Poland on EU assistance”.

“A critical focus point will be next week’s inflation print, which, if strong, may provide some support to the PLN as it would raise speculation about a rate rise by the central bank, which is currently not priced in by the market”.