PLN: USDPLN Hits 7-Year Low as Global Conditions Turn Supportive to CEE FX
Jun-26 12:45
USDPLN is trading lower for the seventh consecutive session, during which time it has fallen over 2.5%. Spot briefly pierced the 2020 low of 3.6168 earlier today – placing the pair at its lowest level since 2018 – before partially trimming losses. Meanwhile, EURPLN has narrowed the gap to key short-term support at 4.2230, the May 15 low, albeit today’s range is relatively narrow.
- Investor focus on carry trades, the surge in the euro to a 4-year high and the stickiness of inflation in CEE have all supported the regional currencies, with both the NBH and CNB striking hawkish tones at their respective central bank meetings earlier in the week. HSBC believe that all conditions are met for CEE currencies to continue to perform well in the near-term, while ING say they remain bullish on the currencies.
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