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PLN: Zloty On Defensive

PLN

EUR/PLN remains in the vicinity of the 4.30 figure, last trading +77 pips at 4.3063. The zloty is among the worst performers in the EMEA space, with only the Czech koruna faring worse. PM Tusk is expected to announce his government's plans on the proposed infrastructural megaproject including a hub airport and a high-speed railway network.

  • MNI recently spoke with two MPC members from the different sections of the monetary policy spectrum. Ireneusz Dabrowski said that the most probable scenario for this year is "wait and see," while hawkish dissenter Joanna Tyrowicz maintained her call for a 200bp rate hike but also acknowledged "unprecedented" zloty appreciation.
  • From a technical point of view, a break above Jun 21 high of 4.3360 would bring key resistance from Jun 14 high of 4.3826 into view. Meanwhile, bears keep an eye on the 4.25 support area.
  • SAGB yields are marginally higher; WIG20 Index is slightly firmer, extending recent gains to approach mid-May cyclical highs.

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