PLN Outperforms CE3 Peers, NBP MonPol Decision Eyed Wednesday

The Polish Zloty outperforms in the CE3 region ahead of an NBP monetary policy decision this week, with the focus yet again on new communications amid virtually universal expectations of no change to interest rates. Czechia observes a public holiday.

• EUR/PLN has shed 52 pips and deals at PLN4.5670 after printing new cyclical lows at PLN4.5638. Familiar technical targets are in play, with bears looking for a move towards May 30, 2022 low of PLN4.5599.
  • Bloomberg reported that the EU's top court will rule in a case over controversial CHF loans on June 15, with mBank noting that "the verdict was expected closer to the autumn." The WIGBANK index has added nearly 1%.
  • Poland's governing party looks to lower the minimum number of judges in cases which must be heard by the full bench of the constitutional court. The move is intended to facilitate a hearing on reforms needed to unlock EU funding for Poland, but may also fuel tensions within the ruling coalition.
• EUR/HUF trades +1.14 fig. at HUF372.91 and bulls look for a break above the 20-EMA, which intersects at HUF374.91. Bears see Apr 18 low of HUF369.47 as their initial target.
  • Hungary said that it will amend concession contract on the maintenance and development of the road network as part of measures to alleviate budget pressures in 2023 and 2024.
• The Koruna lags its regional peers amid holiday-thinned liquidity. EUR/CZK trades +0.045 at CZK23.439, holding last Friday's range so far.