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EUR/PLN Biased Higher Ahead of NBP & ECB Minutes

POLAND
  • EUR/PLN remains pegged in the 4.5085-4.53 lateral range ahead of Wednesday's NBP meeting.
  • Broad consensus remains that the NBP will hold rates steady, despite its recent dovish tilt. Expectation is for QE and PLN jawboning and interventions to be favoured over cuts to 0.0% or negative.
  • 4.5085 looking sticky for now, with traders cautions of NBP intervention - may leave the cross biased to the upside this week.
  • ECB minutes this week will also be a key factor for CEE FX
  • with markets gaining insight into the ECB's level of concern about the new covid variant's effects on the EU economy and possible policy outlook for the ECB.
  • Res1: 4.5302, Res2: 4.5414.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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