Zloty Advances Amid Positive Sentiment

EUR/PLN comes under pressure and last trades at 4.3777, nearly 100 pips worse off, with wider risk sentiment bolstered by China's RRR cut. Bears would like to see the pair move through Jan 9 low of 4.3309, which would open up Dec 13 low of 4.2935. On the flip side, initial focus falls on Jan 17 high of 4.4124.

• The Finance Ministry yesterday sold PLN10bn worth of POLGBs maturing in 2026-2047, attracting demand for PLN16bn, with an additional PLN0.9bn sold at a top-up auction. Santander commented that despite decent supply, demand was also solid, which was the case for the second time in a row, which suggests that investors may get some early exposure ahead of the upcoming rate-cut cycle. They also attribute strong demand to a relatively large amount of debt maturing in January.
• The Senate debates the budget bill in plenary session after a committee recommended its adoption. Should the upper house vote in favour (which is widely expected), the bill could be submitted to the President as soon as today.
• Poland's unemployment rate ticked higher to 5.1% in December from 5.0% prior, in line with expectations and the preliminary estimate from the Ministry of Family and Social Policy.