The zloty edged past EUR/PLN 3.80 in
reaction to the remark on the expected zloty
appreciation to EUR/PLN 3.7 in the 3M
perspective made by one of the high-ranking
finance ministry officials on Thursday.
Eventually however the pair once again
failed to make a sustainable extension to
last week’s upleg and retreated to the 3.81
area before the end of the day as preweekend
profit taking kicked in. At the same
time the broadly weaker dollar hit fresh 9
year lows against the zloty at just below 2.85
USD/PLN overnight today.
The domestic agenda is empty this week so
the regional sentiment should play the
leading role for the zloty in the short run. We
have seen the EUR/PLN try to break past
the crucial 3.80 mark and even though so far
the zloty so hasn’t been successful in these
attempts, the pair should eventually return to
testing bids in this area in the coming days.
As of now we see no reason to change our
yearend target range of 3.75-3.7750 for
EUR/PLN.
(CSOB - Investment research)