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Citi Sees PLN as Most Vulnerable CEE Currency To Russian Tensions

POLAND
  • PLN is the most vulnerable currency among the CEE region to the Russia-related on-going tensions given Poland relatively bigger dependence on imports from Russia.
  • Even though NBP has improved its communication regarding policy outlook in recent meetings, we previously saw that PLN still carries a political risk premium amid on-going dispute with EU bloc.
  • USDPLN has been testing its 100DMA resistance in the past few days; a break above that level would open the door for a move up to 4.0720 (50DMA).

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