Zloty Advances, Ignores Local Data

The zloty has largely shrugged off the latest round of Polish CPI and GDP data, with EUR/PLN slipping to one-month lows. The rate last deals at 4.2644, down 36 pips on the day, with Apr 9 low/round figure of 4.2527/00 marking the key near-term bearish target. Bulls keep an eye on May 1 high of 4.3442.

• Statistics Poland confirmed April inflation at +2.4% Y/Y, with price growth expected to accelerate further in the coming months. Preliminary Q1 GDP growth came in at +1.9% Y/Y, just above the consensus forecast (+1.8%), with sell-side desks flagging their assessment that consumption is recovering alongside a slowdown in investments.
• POLGB yields sit 1.8-4.2bp lower, curve runs flatter at the margin, with core and regional FI showing some strength. The WIG20 Index has edged lower but remains in a previous uptrend.