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###POV: EURPLN SET TO BREAK LOWER -.....>

EURO-POLISH
EURO-POLISH: ###POV: EURPLN SET TO BREAK LOWER
- EURPLN could challenge the 4.12 area. The Polish Zloty staged impressive gains
against the EUR in 2017. This trend has continued in 2018 amid the broader rally
in EMFX and has potential to extend further.
- Poland announced on Tuesday the country's economy had grown by 4.6% in 2017,
beating all forecasts and further highlighting the buoyant tone.
- The Zloty has gained over 5% against the EUR and 16% against the USD as the
strong Polish labour market supports fast economic growth.
- Recent PLN strength has been seen following PM Morawiecki remarks that a
steady, slow strengthening Zloty is not bad for the Polish economy.
- Firmer equities and a softer USD should also continue to underpin investor
risk appetite.
- EURPLN UPSIDE RISK: With Polish inflation expected to remain moderate in the
short-term, risk remains from the oversold USD which could be open to a
correction.

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