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EUR/PLN Through 200-dma Support

POLAND
  • EUR/PLN extends modest downside to show below the 200-dma at 4.6968 (hence the modest acceleration in the weakness today) to put the pair at the lowest levels since mid-September and well within range of key support at Sep 12 low of 4.6888.
  • Move coincides with solid bull flattening of the Polish curve Thursday, with 2y yields off near 30bps to 8.28% - to nearest lowest level for the front-end since late October.
  • Recall from this morning / late yesterday: "Poland are to reach out to foreign sovereign wealth funds and central banks to secure financing and reduce borrowing needs domestically. Morawiecki said “we’re witnessing enormous turbulence on the financial market, so we’re doing everything to reduce government borrowing needs”. "

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