It’s a real exotic asset. Its distinctive features include low predictability, high volatility as well as high spread, which can be attributed to insufficient liquidity.
In terms of rarity, it has much in common with the Russian ruble or the South African rand. If you want to succeed in trading this asset, you are bound to pay attention to pan-European events.
The EU economy generally forms the long-term trend for this currency pair.
The major distinctive feature of this asset is that it’s under significant influence of fundamental factors, and you should consider it when creating your trading strategy.
Unfortunately, the Internet can’t offer a lot of materials on the asset. As follows from this, you’ll have to research this question on your own.
Perhaps, you can benefit from specialized forums. At such platforms, traders discuss the current and future trends of this currency pair and share their points of view. Most visitors of such online resources speak Polish and English.
The given asset is primarily active during the European trading session. It resembles other exotic holdings in terms of volatility. It’s quite sluggish on Monday but becomes more vivid on Tuesday.
The Polish economy has had to make a long and tough way to free market. This Eastern European country coped with the implementation of market reforms and gained the EU membership in 2004. Poland’s economy has the following distinctive features:
Various EU members appear to be Poland’s major trade partners. Chemical and light industries, shipbuilding, engineering, and agriculture form the bulk of the country’s exports.
Notwithstanding the fact Poland has the EU membership, it hasn’t switched to the euro yet. It’s because Poland hasn’t met the critical requirements for joining the eurozone. Among the essential issues of the country’s economy, we can mention the instability of Poland’s currency zloty as well as the budget deficit.
Of course, the American economy is much bigger than the Polish one, and the bulk of its GDP is formed by services (80%).
As for the share of the American industrial sector, it accounts for 19,2% and agriculture amounts to 1.5%. Consider this when trading this asset. In addition to this, you require considering macroeconomic indicators of the USA, Poland, and the EU.
Commodity markets need to be monitored too. You should also pay attention to unemployment in America and Poland. Don’t forget to observe what the major banks of these countries do with interest rates.
Never underestimate technical analysis. However, fundamental analysis is more important here. It will enable you to spot the optimal entry and exit points to the Forex market. Use various timeframes to assess the chart. Thus, you’ll determine trends in different periods. As for money management, the golden rule states that you shouldn’t sacrifice more than 10% of your deposit.