PLN: Zloty Stabilises After Wednesday's Sell-Off

EUR/PLN had a look above the 4.30 figure and stays in the vicinity of that level, last trading little changed at 4.2972. A sustained break above 4.30 would allow bulls to set their sights on Jul 2 high of 4.3321. Conversely, bears look for a dip towards key support zone around the 4.25 mark.

• Santander write that they expect EUR/PLN to continue to operate within the 4.25-4.38 range until the end of the year, flagging the potential for higher volatility around the US presidential election, as well as the positive impact on the zloty from a rising rate disparity with the Eurozone. ING expect EUR/PLN to return towards 4.28 around the turn of the week.
• The local data docket is virtually empty. Millennium Bank and Peko both wrote in their morning notes that global trends will likely set the tone for domestic markets today.
• POLGB yields are a touch lower across the curve. The WIG20 Index has faltered in line with global sentiment and last deals 1.5% lower on the session, testing support from Apr 16/Jun 14 lows around 2,384.