EUR/PLN: Levels up to 4.60 to be tested – Nordea

The Polish zloty is facing headwinds due to the COVID-19 market sell-off. Economists at Nordea expect the PLN to fare even worse in the coming months. EUR/PLN trades at 4.559.

Key quotes

“As we expect more turmoil and volatility ahead, we in turn also expect EUR/PLN to move higher in the short run.”

“We do not find many arguments as to why the zloty should recover in the short term, and we could easily see levels around 4.60, which has otherwise not been the case since 2016.” 

“In the second half of the year, we expect a mild PLN appreciation as the market volatility may ease.”