EUR/PLN Trims Earlier Gains, Uptick Seen Around Gazprom Headlines Proves Short-Lived

Zloty came under some light pressure around 11:15 GMT as wires carried comments from Russia's Gazprom noting that the company considers reducing gas transit through Ukraine from next week, which would exacerbate the energy crises in Europe at the start to the heating season. The resultant uptick in EUR/PLN has now been unwound as the Eurozone's shared currency weakens across the board.

• Gazprom has threatened to reduce gas flows through the Sudzha pipeline as it accuses Ukraine of holding up 52.52mn cubic meters of gas meant for Moldova. Sudzha is the only remaining entry points for Russian gas into Europe.
• Major European currencies have softened, with EUR pulling back from its highs vs USD. The NOK is the clear outperformer in the European part of the G10 basket.
• Headline flow out of Poland has been fairly limited after the release of below-forecast macroeconomic data this morning.
• EUR/PLN last sits at PLN4.7046, off the post-data session high of PLN4.7177 & the PLN4.7154 peak of its upswing seen around the Gazprom headlines. The rate has reduced its intraday gains to 75 pips, struggling to break out of a familiar range in the process.
• USD/PLN trades at PLN4.5877, oscillating near neutral levels, as greenback weakness remains.