EUR/PLN seen grinding lower to 4.30 in 3-month – Danske Bank

Jakob Christensen, Chief Analyst at Danske Bank, sees the Polish Zloty picking up pace in the next months.

Key Quotes

“EUR/PLN moved higher following the Trump win, as sentiment towards emerging markets deteriorated and geopolitical risk increased. Furthermore, there is still uncertainty about the budget for 2017 amid a weakening economy”.

“Given the weak risk environment, notably widening euro periphery spreads, the PLN may trade weak for the next month”.

“Nevertheless, we think fundamentally the EUR/PLN has increased by too much and we look for a move lower once we have more certainty on Trump’s policies”.

“Hence, we raise our forecast for PLN to 4.35 (4.30 previously) in 1M and expect it to fall to 4.30 (4.28 previously), 4.26 and 4.22 in 3M,6M and 12M, respectively”.