Despite the ongoing war in Ukraine, the Polish zloty strengthened against the euro. However, economists at Danske Bank expect EUR/PLN to edge higher and forecast the pair at 4.70 in six months.

EUR/PLN to move higher as the war in Ukraine will linger on

“We are still expecting EUR/PLN to move higher as the war in Ukraine will linger on, the slowdown in the global economy from the central bank tightening by notably the Fed and the headwinds it will create for the Polish economy, which will temper the rate hike commitment of the central bank.” 

“Our path for EUR/PLN is 4.68 in 1M, 4.68 in 3M, 4.70 in 6M and 4.74 in 12M.”