PLN poised for further appreciation – Danske Bank

Senior Analyst at Danske Bank Jens Pedersen sees the Polish Zloty appreciating further in the next months.

Key Quotes

“EUR/PLN came under further downward pressure yesterday following a higher-than-expected CPI inflation rate in November”.

“Inflation was 2.5% y/y in November, marginally higher than consensus of 2.3% (and up from 2.1% last month). In m//m terms, it increased by 0.5% versus the 0.4% expected. Due to base effects, headline inflation should fall a bit over the next few months, before rebounding early next year”.

“But yesterday’s number is still supportive for PLN, opening for further moves lower in EUR/PLN (creating downside risk for our EUR/PLN forecast of 4.23 by mid-December)”.