EURO course in a narrow band before the election. The dollar strengthened was not favorable, but the zloty holds tight

The euro exchange rate has been moving in a narrow band between 4.23 PLN and 4.25 PLN for several days, and in recent hours stabilizing around the upper range. Although the dollar strengthened was not conducive to gold, it looks like the last straight before the second round of presidential elections, the Polish currency shows relative stability and resistance to external tensions.

On Thursday, the dollar strengthening was observed related to swirls on the bond market. The US had to propose an additional bonus for 20-year papers the day before due to poor demand. In Thursday's vote in the House of Representatives, only one voice managed to vote for the laws of Donald Trump reducing taxes.

The dollar strengthening was not conducive to gold, so the EUR/PLN exchange rate increased on Thursday afternoon to over PLN 4.254. Only for a moment, however, he left the narrow range of quotations between 4.23 and 4.25 PLN, which is observed from Monday afternoon, when tensions related to the first round of presidential elections and the US rating reduced before the weekend.

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On Friday morning, the EUR/PLN exchange rate around 9.32 was already PLN 4.2452, which is about the day before at this time. “We are a week before the election. The results of the first round had an impact on the quotations of Polish assets. I think that the zloty will be waiting for the settlement of these choices,” Monika Kurtek, the main economist of Bank Pocztowy, told PAP Biznes.

PKO BP analysts indicated that on Friday the macro calendar is poor, so that the zloty should mainly have the global appetite of investors on the risk.

“In this context, a lot will depend on whether the sale of American treasury bonds will continue,” they wrote in their commentary. In their opinion, the continuation of this trend would probably have a negative impact on global investment moods.

“And for this reason, we believe that at the turn of the week, moving the EUR/PLN exchange rate closer to the level of 4.26 is the base scenario,” they pointed out.

Thursday strengthening of the dollar brought the EUR/USD exchange rate below $ 1.126, but Friday has already brought a relaxation, raising a exchange rate in the morning of even over 1.133. The dollar exchange rate fell to the zloty, and the USD/PLN pair was listed at PLN 3.7434, although on Thursday it amounted to over PLN 3.77.

Nothing happens for several days on the CHF/PLN steam. The Swiss franc course remains in consolidation around the level of PLN 4.54. On Friday, Frank was paid after 9.25 in the morning PLN 4,5389. For over a month, the franc exchange rate has been in the range of PLN 4.50-4.60. In turn, the British pound was recorded after PLN 5.0489 and was about 1.5 grosze more expensive than on Thursday morning.

Mku

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