Zloty Appreciates, Ignores Wage & Employment Data

EUR/PLN remains under water, shrugging off the release of local wage & employment data. The rate last deals at PLN4.7140, down 75 pips on the session, with downside technical focus falling on Jan 4 low of PLN4.6573, followed by Dec 26/Jun 21 lows of PLN4.6270/62. On the flip side, bulls keep an eye on yesterday's high of PLN4.7453, with the next target located at PLN4.7848, the high print of Nov 16.

• Corporate wages rose 10.3% Y/Y last month, slowing from +13.9% recorded in November and missing the +13.1% consensus forecast. The negative surprise was fairly big, despite annual bonus payouts in December. Although consumer inflation also cooled last month, the weak outturn for wages confirms that the decline in real wages deepened.
• Meanwhile, employment growth flatlined on a monthly basis, in line with expectations. Annual change was +2.2% versus +2.3% prior and expectations of a steady pace of growth.
• POLGBs have erased their initial upticks and last trade 1.7-3.0bp cheaper across the curve. Benchmark WIG20 equity index is little changed on the day.