Free Trial

PLN: Zloty Improves Along European EM FX After First-Round French Elex Results

PLN

The zloty and its European EM peers are riding a wave of fallout from the first round of French parliamentary election, which returned a worse outcome for Marine Le Pen's National Rally than initially expected. It appeared that Le Pen's party may fall short of absolute majority after the upcoming second round, despite winning a plurality of the vote.

  • Local event risk this week is chiefly associated with the NBP's monetary policy meeting. With the Monetary Policy Council expected to stand pat on rates again (our usual preview is forthcoming), the focus will be on the new inflation projection as well as comments from Governor Adam Glapinski, who will hold his press conference on Thursday.
  • EUR/PLN had a look below the 4.30 figure and last deals at 4.2998, 124 pips below neutral levels. On the downside, a breach of Jun 25 low of 4.2869 would open up 4.2791, the 76.4% retracement of the May 28 - Jun 14 rally. Bulls initially look for a rebound towards 4.3360, the Jun 21 high.
  • POLGB yields have edged higher across the curve, last sit 1.6-3.9bp north of neutral levels. The WIG20 Index has unwound much of its opening gain and hovers just above its previous close.

To read the full story

Close

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.