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20 Apr 2015
Further strength seen in the zloty – Danske Bank
FXStreet (Edinburgh) - Lars Christensen, Chief Analyst at Danske Bank, expects the Polish currency to pick up pace in the upcoming months.
Key Quotes
“We are becoming somewhat more optimistic on the outlook for the Polish economy – mostly on the back of the significant improvement in the outlook for the Eurozone”.
“Polish inflation continues to undershoot significantly the central bank’s (NBP) 2.5% target and we are likely to see continued deflation in coming months and with the zloty continuing to strengthen, there should be room for more rate cuts. However, the pickup in Polish growth is likely to reduce the feeling of urgency in regard to further rate cuts”.
“The zloty has rebounded from the relatively weak levels at the beginning of the year and we are looking for further appreciation in the near term”.
“The currency is supported by both a moderately more positive outlook for growth and the ECB’s QE programme. With yields and rates coming down across Europe, the zloty looks increasingly attractive from a carry perspective”.
Key Quotes
“We are becoming somewhat more optimistic on the outlook for the Polish economy – mostly on the back of the significant improvement in the outlook for the Eurozone”.
“Polish inflation continues to undershoot significantly the central bank’s (NBP) 2.5% target and we are likely to see continued deflation in coming months and with the zloty continuing to strengthen, there should be room for more rate cuts. However, the pickup in Polish growth is likely to reduce the feeling of urgency in regard to further rate cuts”.
“The zloty has rebounded from the relatively weak levels at the beginning of the year and we are looking for further appreciation in the near term”.
“The currency is supported by both a moderately more positive outlook for growth and the ECB’s QE programme. With yields and rates coming down across Europe, the zloty looks increasingly attractive from a carry perspective”.