ECB Base Money Cut Triggers Euro Exchange Rate Volatility
The European Central Bank (ECB) reduced its base money and foreign assets in the week ending September 11, 2026. This led to a decrease of €0.1 billion in the Eurosystem's net position in foreign currency, which now stands at €350 billion.
Base money also dropped by €22.5 billion to €3,945.3 billion, indicating changes in central bank liquidity conditions that can influence the supply-demand dynamic for the euro and its exchange rates against other currencies like the Polish zloty (PLN).
The EUR/PLN exchange rate is trading at zł4.3653, up slightly on the day, and remains above its key moving averages, maintaining a positive structure relative to both short- and long-term trends.
According to technical analysis, EUR/PLN is expected to move within a typical volatility band between zł4.3435 and zł4.3871 over the next 2-3 days, with a high probability of stability or an upward breakout if it breaches the upper resistance at zł4.3871.