PLN: Global Themes Weigh on Zloty, EURPLN Returns Above 50-Day EMA

The risk off theme across markets is the main driver behind zloty weakness today, with softer equities and weak European PMIs all contributing to the poor showing from CEE currencies. Though idiosyncratic factors have been scarce in Poland today, the local currency is second to only the Hungarian forint as the weakest in the EMEA region, with EURPLN around 0.4% higher at typing and near the 50-day EMA at 4.2933.

• PLNHUF has gained around 0.4% today amid notable HUF underperformance following the NBH rate cut yesterday, placing the cross back above the 50-DMA. Meanwhile, PLNCZK is moderately lower on the session but trades just 1% shy of multi-year highs printed earlier this month. There is little in the way of scheduled risk events for the remainder of the week in the CE3 region as a whole, with price action likely to be a function of global risk sentiment.