The Polish zloty came under pressure from the weaker Turkish inflation reading on Friday afternoon and extended it’s losses against the euro yesterday morning as the Czech post election stalemate added to the sour market sentiment. With nothing on the domestic agenda the EUR/PLN pair ended the slide quite quickly though and shifted to consolidation mode in the 3.95-3.96 area. Just before the closing the second major correction of the day pushed the EUR/PLN up to 3.97.
The economic calendar is empty today, so we believe that the market mood will remain largely dependent on global factors today, events in the Czech republic and Turkey in particular, both of which should keep buyers cautious and prevent the PLN from broader gains.
(CSOB - Investment research)