11 Jun 2015
EUR/PLN seen at 4.05 in 12-month – Danske Bank
FXStreet (Edinburgh) -
Analyst at Danske Bank Thomas Harr expects the cross to re-visit the 4.05 area in a 12-month view.
Key Quotes
“We are becoming somewhat more optimistic about the outlook for the Polish economy – mostly on the back of the significant improvement in the outlook for the eurozone. So, while we expect lower GDP growth in 2015 than in 2014, we expect it to pick up during the year and into 2016”.
“Polish inflation continues to undershoot significantly the central bank’s (NBP) 2.5% target and we are likely to see continued deflation in the coming months. With the zloty continuing to strengthen, there should be room for more rate cuts. However, the pick-up in Polish growth is likely to reduce the feeling of urgency in regard to further rate cuts”.
“The zloty has weakened recently after a period of appreciation. As a result we have lifted our 1M, 3M and 6M EUR/PLN forecasts moderately. Looking forward, we would expect the appreciation trend to resume in the coming months”.
“The currency is supported by both a moderately more positive outlook for growth and the ECB’s QE programme. Solid fundamentals support PLN strength”.
Analyst at Danske Bank Thomas Harr expects the cross to re-visit the 4.05 area in a 12-month view.
Key Quotes
“We are becoming somewhat more optimistic about the outlook for the Polish economy – mostly on the back of the significant improvement in the outlook for the eurozone. So, while we expect lower GDP growth in 2015 than in 2014, we expect it to pick up during the year and into 2016”.
“Polish inflation continues to undershoot significantly the central bank’s (NBP) 2.5% target and we are likely to see continued deflation in the coming months. With the zloty continuing to strengthen, there should be room for more rate cuts. However, the pick-up in Polish growth is likely to reduce the feeling of urgency in regard to further rate cuts”.
“The zloty has weakened recently after a period of appreciation. As a result we have lifted our 1M, 3M and 6M EUR/PLN forecasts moderately. Looking forward, we would expect the appreciation trend to resume in the coming months”.
“The currency is supported by both a moderately more positive outlook for growth and the ECB’s QE programme. Solid fundamentals support PLN strength”.