PLN: EUR/PLN Trades Sideways, Holds Tight Range Just Shy Of 4.30

EUR/PLN trades at 4.2927, oscillating between gains and losses in a narrow range, with little to rock the boat in terms of domestic headline flow. Technically, a break above the 4.30 figure would give bulls a green light for targeting 4.3321, the high print of Jul 2. On the flip side, the area around the 4.25 figure continues to provide a key zone of support.

• ING wrote this morning that the zloty showed resilience amid EUR/USD sales, which in the previous months was followed by losses in EUR/PLN. They noted that the uncertainty around this correlation is higher during the summer period as domestic investors are less active. They added that EUR/PLN sell-offs usually start at the beginning of the week, and the fundamentals remain strong. Over the medium term, the outcome of the US presidential election is the key downside risk for the zloty. Meanwhile, Millennium Bank and Pekao noted that there is limited room for volatility towards the end of the week, with Pekao flagging 4.30 as a significant resistance level for EUR/PLN.
• POLGB yields sit slightly higher across the curve; the daily loss in the WIG20 Index is close to 1%.