As readers of our week ahead report know, it will be a very busy week for monetary policymakers in the developed markets, with potentially high-impact central bank decisions in the US, Japan, New Zealand, and Sweden. However, many traders may not be aware that emerging market policymakers will be just as active over the next few days. Below, we highlight several of the most important events for EM FX traders to watch:
Poland: Election results could keep EUR/PLN trending higher
Over the weekend, Polish citizens went to the polls to elect the conservative Law and Justice party (PiS) into power in the first outright majority in Poland in 26 years. The party ran on a platform of equalizing the country’s recent economic gains, including higher child care benefits and tax breaks for the poor, which has some traders worrying about the government deficit ballooning. On that note, EUR/PLN is rallying back above 4.27 as of writing, and bulls could look to target the pair’s 9-month high up near 4.30 next.