Zloty Appreciates, Elections Matters Remain Front & Centre

EUR/PLN loses altitude for the fifth consecutive day and last changes hands at 4.5583, down 56 on the day. The rate has sunk through its 200-DMA and breached support from Sep 25 low of 4.5831 in the recent days. It is now having a look below the 50-EMA (4.5588), which turns the focus to the 4.50 mark/50% retracement of the Jul 31 - Sep 12 rally at 4.5479. Bulls look for a rebound towards the 4.70 area.

• The rate is consolidating within the government's preferred 4.40-4.60 range, trimming the upswing triggered by the surprising 75bp rate cut in September. NBP Governor Adam Glapinski said at a conference yesterday that the central bank is satisfied with the current level of the exchange rate.
• Political risk takes centre stage ahead of the October 15 elections. Public TV hosted a debate with representatives of all six nationwide committees, fulfilling its legal obligation. Smaller opposition parties capitalised on the clash between Prime Minister Mateusz Morawiecki and former Prime Minister Donald Tusk.
• POLGBs are slightly lower, taking their lead from core markets, albeit the move in local FI space has been limited compared to notable sell-offs in HGBs and CZGBs.
• The WIG20 Index gains for the second day in a row, adding 1.8% on the session and crossing above its 200-DMA.