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EURPLN Returns to Flat Following Softer Inflation Data

PLN
  • EURPLN recovers from its lows on the back of the softer-than-expected preliminary December inflation figures. The cross immediately spiked to around 4.35, but has returned to flat on the day at typing.
  • The year-on-year print of +6.1% was below all the estimates of those in the Bloomberg survey. Energy prices rose 9.8%y/y; fell 0.3% m/m. Fuel prices fell 6% y/y; fell 1.8% m/m.
  • EURPLN initial resistance is found at 4.3732 – the 50-day EMA. Tuesday’s lows of 4.3363 will be the immediate target for the bears.

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