Currency report: Złoty hits paydirt

The currency has gained around five percent against the euro since late August, driven by increasing support for the Civic Platform (PO) party (the latest opinion poll showed support at the level of 42 percent). Civic Platform and its potential coalition partner Law and Justice (PiS) have announced a plan to stamp out corruption, cut taxes and labor costs, create new jobs, and tighten fiscal policy.

Polls have also shown Donald Tusk close to the 50 percent needed for victory in the first round of the presidential elections. Inflows for the zł.2.7 billion IPO of gas group PGNiG were also very important.

Investors hoping for the next Central Bank interest rate cuts have driven bond yields to record lows.

On Friday o1 cost just zł.3.8790 against zł.3.97 last week. The last key resistance for the EUR/PLN is 3.87-3.88.

Marek Węgrzanowski
WGI Dom Maklerski