The Polish zloty kept its edge against the
euro on Friday as the common currency
found it difficult to hang on to the post ECB
gains the day before. The EUR/PLN pair
opened Friday’s session roughly unchanged
in the 4.02 area and traded sideways in
lackluster liquidity conditions with investors
sidelined ahead of the all-important US
payroll report.
At first it looked as if the zloty
would capitalize on the softer than expected
headline result, but gave up all of the gains
just as quickly as the strong hourly earnings
result dampened the overall impact of the
publication. Before the day was over luck
changed hands once again though and the
EUR/PLN ended the session flat at 4.0215.
However, what looked like a calm preweekend
afternoon turned into a nightmare
for zloty bulls after PiS officials informed that
PM Kazimierz Marcinkiewicz would resign.
The zloty instantly lost more than PLN 0.05
against the euro but the information was
announced too late for the market to
respond fully though, so we would expect
continued corrective action today and
more nervousness in the medium term
perspective. Late on Sunday deputy FinMin
Stanislaw Kluza was named by PiS leader
as the candidate for the finance minister
position and this should calm markets
somewhat, after Kluza, who was one of Zyta
Gilowska’s closest associates, vowed that
his action would be a continuation of the
reformist policy of the ex FinMin.
Zloty retreats on political concerns.
(CSOB - Investment research)