The EUR to PLN exchange rate is currently bearish, reflecting downward pressure on the euro.
Key drivers include the European Central Bank's decision to maintain interest rates, counterbalanced by rate cuts from the National Bank of Poland aimed at supporting growth. This environment has weakened the euro's appeal. Additionally, ongoing geopolitical tensions and the energy crisis stemming from the war in Ukraine continue to cast a shadow over the eurozone, impacting overall economic stability. Meanwhile, Poland's GDP growth outpaced expectations, highlighting its economic resilience.
The EUR/PLN is expected to trade within a tight range in the near term, reflecting underlying economic uncertainties.
An upside risk could come from stronger-than-expected improvements in eurozone consumer confidence, while a downside risk may stem from any escalation in geopolitical tensions that affects the euro's performance.