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Sell-Side Sees EUR/PLN Biased Higher after Glapinski's Statement

POLAND
  • EUR/PLN opens higher after a choppy close to the week, following remarks from NBP's Glapinski.
  • Sell side notes the dovish approach and threatened use of FX interventions should keep EUR/PLN biased to the upside in the near-term, with 4.60 a key pivot point.
  • Most rate cut bets for 1Q21 have been tentatively lifted, with QE being the policy tool of choice for supporting the economy.
  • Rate cuts would only be used in the event of aggressive PLN appreciation or economic deterioration.
  • Focus on core CPI today 1300GMT expected to print at 3.7% YoY & -0.1% MoM.
  • Persistently high core figures & slim chance of an MPC majority are also core reasons for no further rate cuts.
  • Res1: 4.5464, Res2: 4.5525, Sup1: 4.5414, Sup2: 4.5368
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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