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EUR/PLN Focused on CPI Amid Dovish NBP Rhetoric

POLAND
  • Local rates continue to drift higher in bear steepening pattern.
  • 10Y now trading above 1.30 approaching resistance at 1.35, 5Y back at September 2020 levels approaching 0.70.
  • EUR/PLN opens lower, bolstered by global risk-on. Focus today on CPI data expected to print flat Y/Y at 2.4%.
  • A flat print is unlikely to move the needle too much, but a downside print may add weight to recent dovishness expressed by the NBP - although core metrics still remain relatively high.
  • Continued risk on should support downside in the cross as strong PLN fundamentals continue to drive inflows.
  • Sup1: 4.4885, Sup2: 4.4812, Res1: 4.4968, Res2: 4.5085
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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