Strong złoty expected to remain steady
The złoty is expected to hold in a tight range around 4.15 to the U.S. dollar in the near term with players expecting no surprise rate cuts at next week's Monetary Policy Council (RPP) meeting.
"The złoty should be rangebound around 4.15 vs. the dollar at least until Wednesday as markets await the RPP's comments after its policy meeting," said Jacek Wiśniewski, treasury analyst at Bank Pekao.But analysts said the złoty, which traded at 4.165 against the dollar and 3.644 to the euro on Friday, was bound to gain ground in future months as foreign portfolio capital trickles into the country's fast-growing local currency debt market.
Chart watchers said support for the złoty, which has traded at 4.15-4.20 against the greenback for the past two weeks, was put at around 4.18 while resistance was seen at 4.135.
The market will also pay close attention to Thursday's release of January balance of payments data, expected to show the current account deficit rise to $590 million from December's $460 million.
"The złoty should be rangebound around 4.15 vs. the dollar at least until Wednesday as markets await the RPP's comments after its policy meeting," said Jacek Wiśniewski, treasury analyst at Bank Pekao.But analysts said the złoty, which traded at 4.165 against the dollar and 3.644 to the euro on Friday, was bound to gain ground in future months as foreign portfolio capital trickles into the country's fast-growing local currency debt market.
Chart watchers said support for the złoty, which has traded at 4.15-4.20 against the greenback for the past two weeks, was put at around 4.18 while resistance was seen at 4.135.
The market will also pay close attention to Thursday's release of January balance of payments data, expected to show the current account deficit rise to $590 million from December's $460 million.
