7 May 2015
Neutral bias around the PLN – BAML
FXStreet (Edinburgh) - In the view of analysts at BAML, the outlook for the Polish zloty remains neutral.
Key Quotes
“First quarter data suggest GDP growth was likely running at 3.3-3.5% from 3.1% in 4Q14, consistent with our full-year 2015 forecast of 3.5% in 2015”.
“In particular, consumer confidence rose to a post-crisis high in April, recording improvements across all components with unemployment fears receding to the lowest level since December 2008”.
“Stable wage growth amid labor market recovery and a low inflation environment should lead to solid consumption growth, in our view”.
“Valuations, QE and a MPC on hold mean PLN has some additional support. While we prefer HUF within CEE, PLN should remain supported versus EUR with some weakening pressures around the election calendar in May and October”.
Key Quotes
“First quarter data suggest GDP growth was likely running at 3.3-3.5% from 3.1% in 4Q14, consistent with our full-year 2015 forecast of 3.5% in 2015”.
“In particular, consumer confidence rose to a post-crisis high in April, recording improvements across all components with unemployment fears receding to the lowest level since December 2008”.
“Stable wage growth amid labor market recovery and a low inflation environment should lead to solid consumption growth, in our view”.
“Valuations, QE and a MPC on hold mean PLN has some additional support. While we prefer HUF within CEE, PLN should remain supported versus EUR with some weakening pressures around the election calendar in May and October”.