EUR/PLN has suffered a sharp fall in February. Economists at Danske Bank lower their forecasts for the pair though they still expect EUR/PLN to move higher over the coming months.

Zloty to enjoy support from NBP tightening in the near-term

“We think that the PLN will continue to enjoy support from NBP tightening at least in next 3M and forecast unchanged or slight lower EUR/PLN. However, beyond that, we think global risk environment will be hit by more aggressive tightening by Fed and weakening inflation-fighting commitment of NBP as economic prospect of the Polish economy weakens, which will lead to rising EUR/PLN.”

“Or new path for EUR/PLN is 4.52 (from 4.56) in 1M, 4.54 in 3M (from 4.58), 4.58 in 6M (from 4.64) and 4.62 in 12M (from 4.64).”