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CE3 Currencies Ease Off Intraday Highs

CEE FX
  • EURPLN, EURCZK and EURHUF have all recovered from intraday lows printed earlier in the session, with the former now marginally in the green.
  • PLN had been the top performer in the EMEA FX space following comments from NBP Governor Glapinski who said that the room for additional rate cuts has narrowed significantly, though PLNHUF and PLNCZK were both seen recording fresh 3-month lows overnight. CZK has since claimed the top spot, despite little in the way of notable domestic news flow.
  • The Fed rate decision is the key risk event today. The FOMC will likely hold rates while maintaining its tightening bias. Despite recent progress on inflation, which will see core PCE forecasts revised down for the first time since 2020, MNI's markets team expect most of the FOMC’s median expectations to be largely unchanged in the latest set of quarterly projections.

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