Goldman Sachs notes that "despite a....>

POLISH ZLOTY: Goldman Sachs notes that "despite a substantial rally in

risk-sentiment & EUR from the March lows, EUR/PLN has retraced less than 50% of

its corona-crisis losses. At current spot levels of around 4.45, it is not far

off the 4.50 level that it has only breached a handful of times in the last

decade, and screens as the most undervalued of the CEE currencies. Moreover,

with rates at the lower bound (0.1%) and QE in train, it is hard to imagine

further dovish surprises form the central bank. On the other side, however,

(COVID-19) infection rates appear contained... The CEE region should also

benefit from the recovery momentum in Euro area activity, and Poland is less

exposed to tourism than some of its CEE peers. Positioning in PolGBs remains a

risk factor, and a key risk to Zloty strength going forward is policymaker

aversion to currency appreciation, but we continue to expect EUR/PLN to reach

4.40, 4.30 and 4.20 in 3, 6 and 12 months, and recommend a short position in

USD/PLN with a target of 3.70 and a stop of 4.05 for investors looking for a

higher beta expression of EUR/USD length."