EURPLN Pares Majority of Post-NBP Losses Ahead of Presser

EURPLN continues to re-gain some of its NBP-inspired losses, with the cross spurred by the most recent uptick in the USD index and accompanying dip in major equity benchmarks. Single currency weakness may also be providing a headwind to CEE FX, though CZK has firmed.

• Price reached as high as 4.4536, just 50 pips shy of pre-NBP levels. While broad weakness is noted across emerging markets, PLN is slightly underperforming its CE3 counterparts (PLNHUF: -0.11%; PLNCZK: -0.34%).
• Attention turns to Glapinski’s presser at 1400GMT/1500CET and his justification of the central bank’s hold decision yesterday. Given the NBP’s data dependency, attention will be paid to further details provided on the Bank’s downwardly revised 2024 CPI forecasts (from 3.7-6.8% to 3.2 - 6.2%). Among sell-side, consensus has shifted toward no more rate cuts until the next forecast update (see a full summary here).