EUR/PLN to trade at 4.25 in three months

The upcoming election will be important for monetary policy as all MPC members will be rotated in the first half of next year. Poland central bank is likely to hike rates four time in 2017, foresees Nordea Bank.

The PLN is expected to remain relatively weak versus the EUR in the near term due to generally negative EM FX sentiment, the upcoming election and the suggestions to force a CHF loan conversion.  

"We have kept our 3M EUR/PLN forecast at 4.25, but see risks skewed a bit to the upside", estimates Nordea Bank.