The Polish zloty closed steady at a month-long high against the euro just above PLN 3.87 in an calm session on the forex market on Friday. Profit taking ahead of the weekend saw the zloty give up some of this week’s gains in early trade, although fresh demand mainly from abroad helped the EUR/PLN inch back south to pre opening levels later in the session. On the political front we cannot stress enough that we have seen remarkable resilient zloty lately as investors have clearly come to terms with the prospect of populist Andrzej Lepper entering the government. We uphold our view that if sealed the conservative-populist deal will be neutral or even slightly positive for the zloty.
With only the core inflation numbers on the eco calendar today the zloty should stick to the current 3.87-3.90 range today.
(CSOB - Investment research)