The Polish zloty ended Monday’s session
basically on par against the euro as choppy
trade first saw the EUR/PLN pair extend last
week’s losses in line with other with CE4
currencies and then retreat to the 3.90 area
as profit taking in the region gradually
eased. With the morning move down not
much more than an extension to Friday’s
reaction to news on Hungary’s worsening
fiscal perspectives the market was back on
track as soon as forint buyers reappeared.
On the domestic scene, politics have started
coming back into the picture with the
banking committee proceedings underway
and Zyta Gilowska’s trial before the anticommunist
screening court heading toward
the final stretch. However, it will probably
take some time before either bears fruit so
we would not bet on any market reaction just
yet.
The regional sentiment remains shaky with
the Forint paving the way (either up or down)
for CE4 Currencies, hence the zloty’s upside
potential should be limited in the days to
come. However, strong economic
fundamentals still underpin the zloty so the
unit should manage to keep an edge against
the euro at least until politics and most
importantly the budget kick in. The EUR/PLN
range for today: 3.90 - 3.9250.
(CSOB - Investment research)