Although Poland is committed to replacing the zloty with the euro in the near future, it continues to use the currency and traders regularly place bets on the USD/PLN pairing.
The zloty has not had the most straightforward of histories and the currency currently in use was introduced in 1995, following a period of significant hyperinflation. By the time this action was taken, it was necessary to replace the old zloty at a ratio of 10,000:1.
Poland is home to one of the fastest-growing economies within the eurozone and it is the sixth largest within the European Union. As well as producing a large amount of agricultural goods, the country also exports electricity and felt relatively little of the impact of the global financial crisis of 2008 and subsequent recession that blighted much of Europe.
Despite this, the government continues to fight against low levels of investment, inefficient infrastructure and high levels of unemployment.
There is relatively little information readily available regarding economic developments in Poland and the USD/PLN pairing, so it can prove difficult for traders to gauge its likely movements.
However, the Polish economy is heavily reliant on the eurozone, with almost half of the country's exports spread across the region. As a result, the zloty generally tends to follow the euro if there are significant European economic data releases or announcements from the European Central Bank.
Of course, the USD/PLN will also be impacted by major developments in the US, so the publication of gross domestic product growth figures and releases such as the monthly non-farm payrolls reports should be closely monitored by those trading this pairing.
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