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#SaxoStrat - Buying EURPLN options as zloty comes under pressure

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January 18, 2016 S&P, bank, call, capital, concern, concerns, currencies, currency, downgrade, eur, euro, eurpln, foreign, forex, fx, government, group, hardy, idea, investor, investors, john, market, markets, option, options, pln, poland, policy, polish, politics, risk, risks, saxo, saxobank, saxobank.com, saxostrat, saxostrats, saxotrader, saxotradergo, saxotv, trade, trader, traders, trades, trading, tradingfloor, tradingfloor.com, tradingfloorcom, view, zloty
The Polish zloty is coming under pressure as the new government takes policy steps causing concern among foreign investors, says Saxo Bank’s Head of FX Strategy John Hardy.

The Law and Justice government is amending laws linked to the independence of courts and the central bank and could hurt Poland’s largely foreign owned banks with new taxes and a reset of legacy CHF-denominated mortgages.

On Friday, S&P downgraded Poland’s debt and is keeping it on negative watch for the same reason. A withdrawal of foreign capital out of Poland risks a significant devaluation of the country’s currency, Hardy says.

You can find all the details on the trade on Tradingfloor.com