The EUR to PLN exchange rate is currently bearish, trading just below its 3-month average.
Key drivers include the interest rate differential, as the European Central Bank maintains a flexible stance while the National Bank of Poland has cut rates to 4.00%. The economic outlook for the Eurozone remains positive, with projected GDP growth and reduced inflation, while Poland experiences robust growth despite recent rate cuts.
The expected trading range for the euro against the zloty is likely to stay stable, as it has recently fluctuated within a 1.7% range.
An upside risk for the EUR could arise from renewed strength in the eurozone’s economic performance, while a downside risk may stem from geopolitical tensions or escalating issues regarding energy prices, particularly if oil prices remain volatile, as seen in recent trades.