EUR/PLN fundamental value should be around 4.00/4.10 – Danske Bank

In opinion of Pernille Henneberg, Senior Analyst at Danske Bank, the Polish Zloty could gather extra traction in the next months.

Key Quotes

“Other emerging market currencies continued the very strong run that we have seen over the past month. We think that much of the strength has been strong global risk sentiment in conjunction with a synchronised global recovery, reduced fears of imminent US trade protectionism by the Donald Trump administration and continuing ample global liquidity and low interest rates in developed markets, making high-yielding emerging markets an attractive investor destination”.

“One of the beneficiaries of the conducive emerging market environment has been the Polish zloty, which strengthened further against the EUR (yesterday to 4.21), even catching up with our 12M relatively bullish forecast. The strong run may continue as long as the global risk environment remains strong as the fundamental value of the EUR/PLN is probably around 4.00-4.10”.