EEMEA | Emerging Markets | Fiscal Policy | FX | Monetary Policy & Inflation
Four Reasons to Be Bearish PLN
- By Caroline Grady
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- 4 min read
Summary
• The NBP’s hawkish U-turn has failed to support the zloty, with the currency trading back near all-time highs.
• Poor NBP communication, ongoing tension with the EU over the rule of law dispute, escalating tensions at the Belarus border and central bank preference for a weaker currency suggest further weakness ahead.
Market Implications
• Long EUR/PLN.
Summary
• The NBP’s hawkish U-turn has failed to support the zloty, with the currency trading back near all-time highs.
• Poor NBP communication, ongoing tension with the EU over the rule of law dispute, escalating tensions at the Belarus border and central bank preference for a weaker currency suggest further weakness ahead.
Market Implications
• Long EUR/PLN.
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