EUR/PLN to stick to 4.53-4.60 range in the absence of political complications – Credit Suisse

The recent 4.53-4.60 range in EUR/PLN looks set to hold for now. In the absence of fresh meaningful developments on the political front, strategists at Credit Suisse would consider increases in EUR/PLN towards 4.63 – last seen in early April – as a selling opportunity.

Spikes toward 4.63 an opportunity to sell

“We are neutral on the zloty at current levels as we do not see compelling short-term reasons for a sustained break of the range that EUR/PLN has been holding since mid-July of around 4.53-4.60.”

“A shift in EUR/PLN to a new trading range (e.g. 4.60-4.65) will probably require the political picture to deteriorate further to such an extent that markets price in early general elections as a done deal. This is not our base case.”

“In the absence of fresh meaningful developments on the political front, we would consider increases in EUR/PLN towards 4.63 – last seen in early April – as a selling opportunity.”