PLN: Monetary Policy Decision Takes Focus

EUR/PLN has traded on a heavier note ahead of the announcement of the NBP's rate decision, with the zloty outperforming its CE3 peers early doors. The rate sits -72 pips at 4.3016 and bears look for a dip through 4.2791, the 76.4% retracement of the May 28 - Jun 14 rally. Meanwhile, bulls seek a move towards 4.3826, the Jun 14 high.

• Poland's central bank is widely expected to act in line with the unanimous analyst call for an on-hold rate decision, but the statement will likely include the main parameters of an updated macroeconomic forecast. There is no fixed time for the release of the rate decision (the previous three crossed the wires at 13:17BST, 14:34BST and 14:28BST). With the outcome of the meeting all but guaranteed, the focus will turn to the press conference with Governor Glapinski tomorrow.
• POLGB yields are a tad lower across the curve, with the 10-Year POLGB/Bund spread tightening extending into the ninth consecutive day as part of a pullback from four-month wides touched in mid-June. Worth noting that Citi Handlowy wrote in their latest weekly report that Poland's increased issuance of PLN-denominated bonds in the period from January to May has failed to attract foreign investors.
• The WIG20 Index has added 0.8% so far, with bulls setting their sights on cyclical highs.