Refreshing Cyclical Highs

EUR/PLN briefly pierced support from PLN44784, which limited losses on May 17 & 23, but struggled to make a sustained move beyond that level. The rate last changes hands at PLN4.4850, a touch lower on the day. Bears look for a clean breach of recent lows before setting their sights on Jun 7, 2021 low of PLN4.4360. Conversely, bulls look for a rebound towards the 20-EMA, which intersects at PLN4.5399.

• Talk of potential support for the zloty from government FX conversions continues to do the rounds, even as the Finance Minister said that they were not active in the market. Santander suggested that participation by state development bank BGK cannot be ruled out.
• POLGBs are firmer, yields sit 1.7-3.2bp lower, unwinding some of yesterday's upticks. The Finance Ministry said it will offer PLN4-7bn worth of bonds (OK1025, PS0728, WZ1128, DS1033), which Millenium Bank say is 1bn less than in the initial auction schedule.
• The WIG20 index corrects its recent rally to new cyclical highs. Poland's equity benchmark has shed ~1.7% this morning after charting a gravestone Doji candlestick yesterday.
• Consumer confidence in Poland improved to -29.9 in May from -32.2 prior. The median estimate in a Bloomberg survey was -30.8.