Trump's fall in polls paradoxically helps Polish currency

According to Łukasz Wardyn, director - Eastern Europe, CMC Markets, when analyzing the situation on the PLN charts, it is hard to be optimistic - the longer the zloty is below key levels, the more the probability of a decline increases. Meanwhile, investors are currently pinning their hopes on the survey decline in Donald Trump, who has less than a month to make as many promises as possible to stimulate the American economy. As a result, the acceptance for risk remains high, which allows the zloty to remain at its current levels.

The key levels for the PLN for today are 3.8 on USD / PLN and 4.47-4.48 on EUR / PLN. If the zloty's strength is to return, these levels should be broken as soon as possible. In the event of a zloty rebound, nervousness and high volatility can return quickly.

"However, a spark that will make investors think differently. For example, the closer to Joe Biden's win, the more investors may start to fear the democrat's decision once he becomes US president. He may, among other things, introduce higher taxes for tech giants, such as Apple, Alphabet, Microsoft and Facebook. It may also try to normalize the situation in the pharmaceutical industry and put a lot of emphasis on price control of drugs and healthcare (although no one in the US has managed to do so yet). This could hit the largest pharmaceutical companies and such which base their activities on niche, very expensive drugs," Łukasz Wardyn noted.

(ISBnews)