The PLN to USD exchange rate exhibits a bearish bias as the USD shows signs of potential weakening.
Key drivers include the monetary policy shifts, with the U.S. Federal Reserve expected to implement further rate cuts that may lead to a weaker dollar. In Poland, the National Bank of Poland has recently cut interest rates, reflecting a strong GDP growth while successfully managing inflation near target levels. This differential is favorable for the PLN against the USD.
The near-term trading range suggests the PLN may stay stable, hovering around the current price as it trades slightly above its recent average.
An upside risk could arise from improved global economic conditions boosting the PLN's strength, while a downside risk may stem from unexpected U.S. economic data that could reinforce confidence in the dollar, affecting the exchange rate negatively.