EUR/PLN expected to drop to 4.28 in 12-month – Danske Bank

Jakob Christensen, Chief Analyst at Danske Bank, sees the Polish Zloty gathering further traction in the medium to long term.

Key Quotes

“In line with our expectation, EUR/PLN has been relatively stable around 4.30 over the past month”.

“The US election and a possible rate hike by the Fed in December may weigh on EM currencies, including the PLN, over the next months”.

“However, in the base case of a Hillary Clinton win and continuing strong growth in the Polish economy, we expect the PLN to continue to trade relatively stable over the next month, but then to strengthen slightly thereafter”.

“Hence, we expect EUR/PLN to remain around 4.30 in 1M and then to fall to 4.28, 4.26, and 4.22 in 3M, 6M and 12M, respectively”.