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Sell Side Fading the Dips in EUR/PLN as FX Interventions Weigh

CEE FX
  • EUR/PLN continues to underperform CEE following NBP FX intervention, trading above the 4.50 handle supported by broad risk-off yesterday.
  • Low liquidity currently supporting larger moves
  • With limited local catalysts, global sentiment should largely dictate price action with an upside bias.
  • Sell side favouring a fade the dips approach towards 4.47 with Brexit volatility doing little to stabilise markets.
  • Near-term resistance at 4.5719, 4.5227 & 4.5366
  • EUR/HUF suffering mostly as a result of recent NBP actions & PLN volatility.
  • 361.50 resistance capping upside in the short-term, but may push towards 362.66 - 363.20 on a move above 361.50.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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