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11 May 2015
EUR/PLN seen grinding lower – Rabobank
FXStreet (Edinburgh) - Strategist Piotr Matys at Rabobank believes the cross could head lower in the medium term.
Key Quotes
“EUR/PLN plummeted to a year-to-date low at 3.9672 in April - the lowest since July 2011. While the pair trimmed its losses by bouncing back to 4.0856 recently, we maintain our bearish view with the 3.90 level as a potential target in Q2”.
“The full-blown QE programme in the Eurozone will continue to exert downside pressure on EUR/PLN. Relatively positive prospects for the Polish economy also support our constructive view on the zloty”.
“The easing cycle is over with the base rate at 1.50%, but the MPC may still narrow the interest rate differential if the PLN appreciates excessively”.
“Unsolved conflict in eastern Ukraine remains the main source of risk to the Polish assets”.
Key Quotes
“EUR/PLN plummeted to a year-to-date low at 3.9672 in April - the lowest since July 2011. While the pair trimmed its losses by bouncing back to 4.0856 recently, we maintain our bearish view with the 3.90 level as a potential target in Q2”.
“The full-blown QE programme in the Eurozone will continue to exert downside pressure on EUR/PLN. Relatively positive prospects for the Polish economy also support our constructive view on the zloty”.
“The easing cycle is over with the base rate at 1.50%, but the MPC may still narrow the interest rate differential if the PLN appreciates excessively”.
“Unsolved conflict in eastern Ukraine remains the main source of risk to the Polish assets”.