EUR/PLN: The zloty is not out of the woods just yet – Rabobank

Poland successfully flattened the curve by imposing strict restrictions relatively early. Poland has won an important battle, but the war continues as economists at Rabobank hold a cautious stance on the zloty.

Key quotes

“The prevailing uncertainty regarding the far from straight forward process of easing restrictions keeps EUR/PLN contained within the descending triangle pattern.” 

“If the government manages to open more sectors of the economy every two weeks, the bias will shift in favour of a break below the support area around 4.52/51.” 

“We remain of the view that it is still too soon to expect a sustainable reversal in EUR/PLN. Any indication that the number of cases at home or abroad is rising again, as restrictions are eased, could trigger another leg higher towards 4.80.”