The Polish zloty got off to a strong start of the week yesterday with the EUR/PLN just above the 3.90 mark at the opening, its lowest in nearly 2 weeks. As trading got off however, the zloty gradually shed most of it’s weekend gains as several Polish corporate players decided to take advantage of the price levels at hand and began slowly shortening their zloty positions. With liquidity conditions extremely thin in the absence of global players the selling ended just as inconspicuously as it had begun in the 3.92-3.93 EUR/PLN range, i.e. near last week’s closing. Trading should resume at full steam today, with US and London investors back after the holiday weekend and since the domestic calendar is empty global factors will remain the key driver for the zloty today.
(CSOB - Investment research)