EURPLN Moving Sideways

UBS maintains a neutral, sideways outlook for EURPLN through early 2027, balancing Poland's strong growth and yield advantage against high valuation and Middle East geopolitical risks.

Key Takeaways

• 1.The zloty is expected to trade broadly sideways against the euro due to balancing forces of high interest rates versus historically elevated valuation.
• 2.Middle East tensions and the disruption of the Strait of Hormuz are the primary near-term drivers of EURPLN volatility.
• 3.Monetary policy in both Poland and the Eurozone shows a hawkish shift, with rate hikes priced in for both central banks if inflation persists.

Table of Contents

• Our view and risks
• Key drivers
• Factors to watch
• Appendix

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial