Back To Flat

Shifts in global risk appetite represented the main driver of EUR/PLN price action overnight, with the pair stabilising as the European session opened. The pair last operates at 4.3377, fluctuating around unchanged levels, which keeps a familiar technical picture in play. The area around Apr 9 low/round figure of 4.2527/4.2500 provides the initial bearish target, while bulls look for a move towards Jan 17 high of 4.4124.

• POLGB curve has bear steepened in morning trade, with yields running 1.6bp-8.0bp higher at typing. The WIG20 Index sits 0.7% below neutral levels.
• NBP's Henryk Wnorowski said that the zloty's fundamental value remains high and the recent depreciation is temporary. He added that EUR/PLN could return to its levels from before the recent weakening, as EU funds keep flowing in, economic fundamentals are strong, and monetary policy remains stable.
• The record of voting at the NBP's monetary policy meeting in March showed that two motions to raise interest rates were proposed and rejected. Joanna Tyrowicz sought a 200bp hike; then, she backed a proposal to raise rates by 25bp alongside Przemyslaw Litwiniuk. The previous meeting in February did not see any motions other than Tyrowicz's usual proposal to deliver an outsize hike, but both Tyrowicz and Litwiniuk did vote for a 25bp cut at the January meeting.