EUR/PLN Bounces Off Lows on NBP Decision

EUR/PLN Bounces Off Lows on NBP Decision

8 June 2016, 12:13
Roberto Jacobs
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EUR/PLN Bounces Off Lows on NBP Decision

The Polish Zloty is partially eroding its earlier advance vs. its European peer, pushing EUR/PLN to the 4.3460 area.

EUR/PLN in 7-week lows

PLN eased some pips after the Polish central bank (NBP) left unchanged its monetary stance at today’s meeting, with the reference rate at 1.5%, the deposit rate at 0.50% and the rediscount rate at 1.75%, broadly in line with market consensus.

The cross is navigating multi-week lows in the 4.34 neighbourhood - levels last traded in late April – following the recent appreciation of PLN against the backdrop of positive GDP prospects and a recovery in the labour market.

EUR/PLN levels to consider

At the moment the cross is down 0.32% at 4.3389 facing the next support at 4.3164 (200-day sma) followed by 4.2600 (low Apr.20) and finally 4.2220 (low Apr.1). On the other hand, a breakout of 4.3587 (100-day sma) would expose 4.3920 (20-day sma) and then 4.4073 (high Jun.3).


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