Currency report: Złoty shows its mettle

Although the EUR/PLN rate jumped to its highest level in two weeks, foreign investors were reluctant to sell the złoty. As a result the EUR/PLN gave back the early gains and stabilized at around zł.3.90.

Volatility during the following days was very low, largely because investors were waiting for political decisions. The EUR/PLN continued to waver around zł.3.90 as new information emerged from both Civic Platform and Law and Justice (PiS). However, neither the nomination of Kazimierz Marcinkiewicz for Prime Minister, nor coalition talks between the two major parties were able to provide a lead for the złoty.

On the major currencies, volatility was even lower than in Poland. The EUR/USD rate was restricted to a very narrow range between $1.2000 and $1.2060. The European currency is once again under strong pressure after German elections failed to answer questions over who should rule the biggest economy in the eurozone.

Maciej Chojnacki
WGI Dom Maklerski