PLN/CZK Loses Ground, Falls To Lowest Point Since Mid-June

PLN/CZK reversed its earlier gains and last deals at 5.3166, slightly below neutral levels, as the zloty lost its earlier appeal. This comes after the pair printed its worst levels since Jun 15 at 5.3114. The broader uptrend remains intact for now, although PLN/CZK has been struggling to print higher highs since the RSI returned from overbought territory in mid-June.

• Poland's FRA curve continued to drift lower today, despite the absence of notable local data or NBP comments on the wires, with the recent downtrend still intact. The moves in Czech FRAs have been more limited.
• Participants will have the opportunity to reassess relative central bank expectations, when Poland releases flash June CPI and Czechia publishes final Q1 GDP on Friday. In addition, the CNB will publish the minutes of last week's Bank Board meeting.
• Prime Minister Mateusz Morawiecki announced that the decision whether to extend mortgage payment vacations could be taken within two months. The details are still under discussion and much depends on NBP rate path.