EUR/PLN: Break higher towards 4.504 – Rabobank
|Poland is an economy that relies both on the external and domestic demand. Analysts at Rabobank forecast the EUR/PLN pair heading to the next major resistance.
Key quotes
“An interest rate cut is inevitable, but the effectiveness of the monetary policy will be relatively low given that the policy rate is already at the record low of 1.50%.”
“In the coming days, the government will reportedly reveal an ‘economic bazooka’ to support companies, protect the labour market and stimulate the economy.”
“Foreign investors do not have a strong incentive to sell EUR/PLN around 4.40 in current unfavourable global environment. We anticipate a break higher in the coming weeks towards the next important resistance area of 4.504.54.”
“It is crucial to emphasise that the risk is firmly skewed towards much sharp squeeze towards 5.00, but such a move may unfold in several stages.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.