Post-Fed Musings Support Zloty After Local Holiday

EUR/PLN ticks lower on the back of post-Fed bid in EM FX, with local players back in the game after a public holiday in Poland. The pair has shed 89 pips to last sit at 4.4587, with bears looking for a move through Oct 17/Jul 31 lows of 4.4096/4.3986. A rebound above Oct 25 high of 4.4898 would put bulls on alert for a potential test of the 50-EMA at 4.5129.

• POLGB curve has bull flattened in morning trade, albeit the initial move has been slightly corrected by this point. Local FRAs remain under modest but steady pressure.
• Post-election coalition talks reportedly enter the final phase, with multiple lawmaker-elects flagging potential for the announcement of a coalition agreement as soon as next week and before the inauguration of new parliament on November 13.
• The minority voice calling for higher interest rates has quietened down for now as NBP's Ludwik Kotecki said that the central bank should stand pat in November and wait for more information about the incoming government's fiscal plans.
• Poland's S&P Global Manufacturing PMI improved to 44.5 in October from 43.9 prior. The index printed marginally above expectations (44.4) but remained in contractionary territory.