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EUR/PLN Edges Lower, Polish Banking Stocks Dip Amid Potential For Mortgage Holiday Extension


EUR/PLN last deals -26 pips at PLN4.7102, with bears looking for a sell-off past Jan 4 low of PLN4.6573 and towards Dec 26/Jun 21 lows of PLN4.6270/62. On the topside, the focus is on Jan 19 high of PLN4.7453, followed by Nov 16 high of PLN4.7848.

  • The WIG20 (-1.5%) has come under pressure, with WIGBank posting its largest loss in months, on the back of source reports suggesting that the government considers extending mortgage payment holidays by a year through the end of 2024. Government spokesman Piotr Muller confirmed these reports, noting that the decision will be taken around mid-2023 depending on the level interest rates. The official said that "if interest rates fall, then there will be no need to extend mortgage holidays."
  • POLGB yields have faltered across the curve, albeit they last operate off session lows. The 2-year/10-year segment returned into inverted territory yesterday, extending this move this morning.
  • Poland's unemployment rate inched higher to 5.2% in December from 5.1% prior, matching the median estimate.

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