The EUR to PLN exchange rate is currently range-bound due to contrasting economic signals from the Eurozone and Poland.
Key drivers include the interest rate differential, as the European Central Bank has maintained rates while the National Bank of Poland has cut rates; this reduction aims to support growth amid stable inflation. Economic forecasts suggest the Eurozone will grow by 1.6% next year, bolstering the euro, while Poland's strong GDP growth could support the zloty.
In the near term, the EUR to PLN is expected to stay within a stable range given its recent trading patterns. Major movements may depend on oil price fluctuations; currently, oil prices are volatile, impacting euro valuations indirectly.
Upside risks for the euro include stronger-than-expected economic data from Germany, whereas downside risks could arise from a prolonged energy crisis in Europe or further interest rate cuts in Poland.