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The long weekend is boosting the złoty. The euro rate falls below 4.24 zł
The zloty edged higher after a quieter market open
EUR/PLN was priced at 4,2354 zł early on, or 0,4 grosza less than on Thursday evening. On Corpus Christi, the euro rate fell by just over half a grosz, and Wednesday’s gain was wiped out.
Market sentiment is still being influenced by comments from NBP head Adam Glapiński. His remarks were seen as more dovish, and the market is still pricing in two 25-basis-point interest rate hikes. PKO BP economists also reiterated their view that rates will stay unchanged until the end of 2026.
Signals from Ukraine also mattered. The resumption of talks on a possible winding down of the Russian-Ukrainian war is improving sentiment toward Polish assets. This is one of the factors that could support the zloty.
On the other hand, the currency is being weighed down by the conflict in the Middle East. Limited tanker traffic through the Strait of Hormuz is helping keep oil prices high, which has an unfavorable effect through the inflation channel and the balance of payments.
Heading into the weekend, the market is waiting for the U.S. jobs report. Economists expect 85 tys. new nonfarm payrolls and an unemployment rate of 4,3%. For currencies, it will also matter whether the dollar gains after the release.
Early on, USD/PLN was falling to 3,6386 zł, while CHF/PLN was quoted at just under 4,62 zł. The pound sterling cost 4,8929 zł. Against the euro, the dollar remained weaker, and EUR/USD was moving back toward 1,1635 USD.
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