The Polish zloty hit week-long highs at 3.9200 EUR/PLN in a lackluster session on Friday as emerging markets steadied ahead of the weekend. The Pope’s visit to Poland lured many domestic players away from trading and with no fresh inspiration on the local data and news front the zloty quickly settled into the tight 3.82-3.83 EUR/PLN range and held to it till the closing.
The session’s economic calendar is blank again today so the market will once again be driven by global factors today. Even though the selling seems to be over for now the zloty has yet to find direction, and unless regional moods improve significantly deeper gains seem unlikely. At the same time, strong fundamentals and demand from exporters should keep the EUR/PLN below the 4.0 mark in the week to come.
As for today’s session it will once again be up to the regional sentiment whether the zloty holds it’s gains, although with US and London players on leave we would expect the unit to remain within the 3.90-3.95 EUR/PLN range in tight trade today.
(CSOB - Investment research)