PLN: Zloty Ticks Higher, EUR/PLN Tests Key Support Zone Again

EUR/PLN changes hands -35 pips at 4.2511, with bears looking for a clean break below the 4.25 support zone, after rejecting May 28 low of 4.2471. This would open up 4.2364, the 1.00 projection of the Jun 14 - 25 - Jul 2 price swing. On the flip side, bulls keep an eye on the 50-EMA at 4.2955, followed by Jul 2 high of 4.3321.

• Statistics Poland confirmed June CPI inflation at +2.6% Y/Y, which is expected to be the last reading within the NBP's target band before an energy-driven rebound. The NBP will release core inflation data tomorrow, but it may have edged lower from the +3.8% Y/Y registered in May.
• NBP's Ludwik Kotecki said that he suspects that Governor Adam Glapinski may have misspoken when he guided towards no rate cuts until 2026. According to Kotecki, the debate on cutting rates could start in 2025 as there should already be room for this. He noted that he has proposed a deliberation on alternative tools, which would reduce the costs of monetary policy and address the over-liquidity in the banking sector.
• POLGB curve has bull flattened, with yields last seen 0.1-4.1bp lower. The WIG20 Index has edged 0.4% lower today.