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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
POLAND
- The PLN has been one of the worst performing currencies in the CEEMEA market in recent days as forward rates have been falling amid quiet NBP.
- The majority of the NBP board is still in favour of keeping interest rates low as the uncertainty over the economic recovery remains elevated.
- Governor Glapinski confirmed last Friday that inflation is currently driven by supply shocks and that he sees no risk of overheating in Poland.
- While the NBP seems to be carefully watching the dynamics of the PLN and wants to avoid the zloty from appreciating too sharply as it would tighten financial conditions, a weak PLN would also weigh on Polish equities. The chart shows the strong co-movement between USDPLN and WIG20 in the past cycle.
- USDPLN ticks higher this morning after finding a local low at 3.83 earlier; resistance to watch on the topside stands at 3.90, followed by 3.92. On the downside, first support to watch below 3.83 stands at 3.79 (100DMA).
- Poland 10Y yield ticks lower this morning and is currently testing its 100DMA at 1.65%; a break below that level would open the door for a move down to 1.60%. On the topside, ST key resistance to watch stands at 1.77% (50DMA).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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