The EUR to PLN exchange rate shows a bullish bias as the euro continues to trade near 7-day highs.
Key drivers include:
- The European Central Bank’s (ECB) flexible monetary policy influences the euro, while recent rate cuts by Poland’s National Bank (NBP) have weakened the zloty.
- The eurozone is projected to see economic growth, enhancing the euro's standing amid ongoing geopolitical tensions.
- Poland's robust economic outlook with significant expected investments adds support to the zloty’s resilience.
In the near term, the EUR/PLN pair is expected to trade within a stable range, reflecting recent movements just below its 3-month average.
Upside risks could stem from improved global risk sentiment or a swift resolution to geopolitical tensions affecting energy prices. Conversely, further rate cuts by the NBP or a slowdown in Polish economic growth could exert downward pressure on the zloty.