PLN appears supported in the longer run – Danske Bank

Chief Analyst at Danske Bank Jakob Christensen expects the Polish Zloty to appreciate further in the medium to longer term.

Key Quotes

“After a weak bout in late summer after new tensions between the EU and Poland flared up again, the zloty has seen a strong run over the past month, as we expected”.

“We expect the cross to trade around current levels near term, barring upside risks from new tensions with the EU. More longer term, higher inflation will prompt a repricing of the NBP’s rate path, adding support to PLN”.

“Our forecasts for EUR/PLN are 4.24 in 1M, 4.22 in 3M, falling to 4.18in 6M and 4.16in 12M”.