Bearish stance well and sound in EUR/PLN – Danske Bank

Jens Sorensen, Chief Analyst at Danske Bank, expects Polish currency to appreciate further in the next months.

Key Quotes

“Despite a general negative risk environment, the EUR/PLN took a dive lower after Moody’s raised the economic growth projection for the Polish economy to 4.3% in 2017, while cutting its fiscal deficit projection to 2.5% of GDP”.

“The rating agency said that t he combination of high growth and solid fiscal performance was credit positive ahead of its review of the ‘A2’ rating (stable outlook) for Poland”.

“The rating agency’s assessment goes well in hand with ours, which underpins our bearish view on EUR/PLN, where we target 4.16 in 12M”.