Zloty Appreciates Amid Gains For WIG20

EUR/PLN has shed 77 pips and last deals at PLN4.6804. Technically, bears keep an eye on Mar 1 low of PLN4.6620, a key near-term support. Bulls see Mar 20 high of PLN4.7215 as their initial target and a break here would expose the 50% retracement of the Feb 14 - Mar 1 downleg at PLN4.7304.

• POLGBs have firmed across the curve, with light curve steepening evident. Local equity benchmark WIG20 has surged ~2.5%, breaking above resistance from Mar 22 high of 1,733.
• NBP hawk Ludwik Kotecki played down optimistic official communications and warned that he sees a "real risk" of the central bank having to resume rate hikes if inflation becomes persistent at elevated levels.
• Meanwhile, Kotecki and Tyrowicz have criticised new central bank regulations restricting policymakers' ability to participate in investor meetings, which will require a permission from the Governor.