The Polish zloty remained in a tight range
against the euro, close to the 3.80 level, also
during Tuesday’s session. The strong uptrend
witnessed in previous weeks ran into
resistance last week as the EUR/PLN 3.80
level is a hard nut to crack. Yesterday
morning, the zloty again tried to break
decisively lower but the attempt missed
power and the pair after having traded as
low as 3.7915 rebounded and closed near
the 3.80 level.
For today, the calendar is
empty and so sideways oriented trading
remains likely. In a longer-term perspective,
we think the pair might go to 3.75 (end-of
2006) and therefore a buy-the-zloty-on-dips
strategy remains favoured.
(CSOB - Investment research)