Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Poland's economy continues to do well, the fiscal performance has been stronger than expected recently and the targets for 2016 look achievable. Poland central bank's mandate is also likely to remain intact but interest rates could be cut if the ECB cuts rates aggressively in March.
However, potential economic and fiscal ramifications outweigh political gains for the government. The main risk come from Poland's relations with the EU. If there is any further deterioration and/or the government embark on new controversial policy measures, investors may loose confidence in the government.
"We raise our real 2016 GDP growth forecast to 3.8% (above consensus), from 3.5%. We see EURPLN trading around current levels for the next three months due to the uncertain policy environment but then moving gradually towards 4.20 in the latter half of the year as the political risk premium abates." notes Danske Bank in a report.
