Current Position: EURPLN recently approached the lower bound of its trading range for the past year, presenting an attractive entry point for a long trade.
Supporting Factors:
NBP Hawkishness: The National Bank of Poland's hawkish guidance at its December meeting has supported the zloty, but risks of an earlier-than-expected rate cut may weaken it.
External Risks: Potential trade frictions under the incoming US administration could hurt the European outlook and indirectly weigh on Poland's economy.
Technical Setup: The technical backdrop supports a higher EURPLN , suggesting bullish potential.
Risks: A swift resolution to the Ukraine war, as indicated by President-elect Trump’s intentions, could strengthen the zloty and pose downside risks to the trade.
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