The euro exchange rate is stable despite tensions in the Persian Gulf. EUR/PLN in a sideways trend

EUR/PLN stable despite tensions in the Middle East

The currency market is so far taking the latest reports of fresh clashes in the Persian Gulf in stride. The euro exchange rate against the zloty remains in a narrow range, and morning trading brought little movement.

On Wednesday morning, one euro cost 4,2451 zł. That is very close to Tuesday evening’s level. It means the pair is still holding the range that has been in place since the beginning of March, namely 4,2250-4,3070 zł.

In the shorter term, the EUR/PLN pair is moving in a consolidation band between 4,23-4,26 zł. Analysts at PKO BP said in a morning note that the quote should remain around 4,2450, and the market is still trading in the middle part of the wider range that started on April 20.

Calm in the euro market is also being supported by the behavior of crude oil, whose prices have been falling in recent days despite geopolitical tensions. For the zloty, that means no additional pressure, at least for now.

The picture looks a little different for USD/PLN. On Wednesday morning, the dollar cost 3,6761 zł. The rate remains below 3,70 zł, but it is still holding the local uptrend that began in mid-April.

The Swiss franc was slightly weaker. CHF/PLN traded at 4,6021 zł, or half a grosz less than the day before. The quotes moved closer to the lower edge of the two-month consolidation around 4,60 zł.

If that support is broken, technical analysis would point to the possibility of the franc falling toward 4,54 zł. That was the last level seen at the end of January.

Sources

1. Current exchange rates: National Bank of Poland (average exchange rate table)