The market for PLN to EUR is currently range-bound, fluctuations occurring within a narrow band. Key drivers include interest rate cuts from the National Bank of Poland, which has reduced its reference rate to 4.00%, influencing the zloty’s value against the euro. The solid GDP growth in Poland further supports the zloty despite these rate cuts. Meanwhile, the ECB remains cautious with its data-dependent approach, which keeps the euro stable.
Recent trading shows PLN to EUR at near 7-day lows, just above the average of 0.2374, remaining in a 1.7% range. On the global front, oil prices are at 30-day highs, potentially impacting the euro due to increased energy costs.
An upside risk for the zloty may arise from further economic growth projections across Poland, while a downside risk includes potential geopolitical developments in the Eurozone, which could create instability and affect currency movements.