On Monday before 1 p.m. the zloty loses against the main currencies. The euro, dollar, Swiss franc and British pound are becoming more expensive.
Around 1 p.m. the euro costs PLN 4.32, the dollar – PLN 3.98, the Swiss franc – PLN 4.61, and the British pound – PLN 5.19.
Expert comments
“The EUR/PLN exchange rate remains in a narrow range of fluctuations and we assume that this trend will continue this week. Further strengthening of the dollar against the euro in the perspective of the upcoming elections in the US with the growing advantage of Donald Trump may mean that the currencies of the region may behave relatively weakly in the near future,” wrote Santander BP economists in a report.
“Trump said that he could impose tariffs of 150-200% on goods from China if they decided to enter Taiwan. We assume that the EUR/PLN exchange rate may move towards 4.33,” they added.
PKO BP economists also point out that in the short term, the external market environment will have a decisive impact on PLN quotations.
“Taking into account the scale of strengthening of the American currency since the beginning of October, clearly reduced market valuations of the scale of Fed interest rate cuts and the lack of significant data from the US in the macro calendar in the first half of the week, which could further deepen these valuations, we expect the correction initiated on Friday to develop currencies already strongly sold against the dollar,” economists predict.
“This would provide grounds, within a few sessions, for the EUR/PLN and USD/PLN rates to drop to close to 4.29 and below 3.94, respectively,” they add.
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