Zloty Barely Changed, Politics In Focus Again

EUR/PLN trades flat at 4.3264, struggling for a clear direction. The hawkish tone of last week's NBP rate decision and subsequent press conference failed to result in a breach of key technical levels. Bears look for a dip through Feb 1 low of 4.3069 before setting their sights on Dec 13 low of 4.2935. On the flip side, a break above Feb 7 high of 4.3564 would give bulls a green light for targeting Jan 17 high of 4.4124.

• POLGB yields are little changed as we type, with FRAs stabilising after post-NBP upswings. The WIG20 Index sits marginally below neutral levels.
• Newsweek reported that the prosecution of NBP Governor Adam Glapinski is still on the table, with the ruling coalition reportedly planning to take action on that front, even as nothing has been formalised as of yet.
• The ruling coalition may also unveil its proposed reforms of the judiciary as soon as this week, which will include an overhaul of the Constitutional Tribunal.