EUR/PLN seen at 4.10 in 12-month – Danske Bank

Jakob Christensen, Chief Analyst at Danske Bank, believes the Polish Zloty could pick up further pace in the longer run.

Key Quotes

“After a strong start to the year, the Zloty has been hit by the deterioration in global risk sentiment, weaker than expected inflation prints and a more dovish NBP. Given these factors, we see the range for the EUR/PLN has moved up to 4.18-4.23 near term”.

“As a result, we have raised our 1M and 3M forecasts for EUR/PLN to 4.20 and 4.18, respectively (previously 4.16 and 4.14). We still expect the strong growth and rise in inflation will give support to the Zloty and therefore target the EUR/PLN at 4.14 in 6M and 4.10 in 12M (previously 4.12 and 4.08)”.