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Core CPI Expected To Decelerate To 3.6% in June

POLAND
  • The PLN has been one of the worst performing currencies in the CEEMEA in the past week as forward rates have been falling amid quiet NBP.
  • The majority of the NBP board is still in favor of keep interest rates low as the uncertainty over the economic recovery remains elevated.
  • This morning, core CPI is expected to decelerate to 3.6% in June from 4% in May (1pm London time).
  • USDPLN has been retracing higher since yesterday and is gradually approaching its 3.90 resistance; a break above that level would open the door for a move up to 3.92. On the downside, first support to watch below 3.83 stands at 3.79 (100DMA).
  • Poland 10Y yield ticks lower this morning and is currently trading slightly below its 100DMA at 1.66%; next support to watch on the downside stands at.60%. On the topside, ST key resistance to watch stands at 1.77% (50DMA).

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