Polish zloty likely to remain weak for some time, EUR/PLN to test 4.50 resistance

Emerging market economies are expected to remain under pressure for some time and the zloty will continue to trade on a weaker side.

The zloty has continued to be under pressure as sell-off on the Polish bond market has not stopped yet. Moreover, the zloty remains the most vulnerable regional currency to negative spill-over effects from other emerging markets. As concerns the technical picture, the EUR/PLN could try to test the 4.50 resistance, KBC Central European Daily reported.

In this respect the ongoing risk-off mode in emerging markets’ universe might easily extend until the December, when there is series of important events, namely, the Italian referendum on a constitutional reform, scheduled on December 4, the monetary policy meeting of the European Central Bank on December 8 and the Federal Reserve Open Committee meeting on December 14.