The EUR/PLN headed south and back into
the 3.86 area on Tuesday as buyers
returned to the marketplace after several
days of profit taking which led the pair just
short of 3.90 earlier in the week. Yesterday
Polish markets were closed for the All Saints
Day, and trading should resume on a strong
note today.
The recent correction seems to have ended
and with the regional mood on the upside,
we could now see the lower bound of the
3.85-3.90 technical range tested, especially
if the bonds keep track following the ECB
statement later in the day. However, both
technically and fundamentally the range is
still in place, and we do not expect the
EUR/PLN to break out of it ahead of the US
payrolls tomorrow.
(CSOB - Investment research)