Zloty to travel toward new record highs in the coming days – ING

The Zloty moved to new record highs on Thursday. Economists at ING like PLN.

Rates have a lot to offer to support PLN

We like PLN and it remains our highest conviction call for now, but Thursday’s move seems a bit premature to us. But we believe this is the direction for EUR/PLN in the coming days. In particular, rates have a lot to offer to support PLN. The market is still pricing in too much in terms of rate cuts in our view and the short end move up will push EUR/PLN down. 

For today, we see levels at around 4.38, but later we should test 4.36 again.