Zloty Claws Back Bulk Of Earlier Losses

EUR/PLN has shed most of its earlier gains and last sits +17 pips at PLN4.5776. Bears look for a full erasure of the initial upswing, keeping an eye on May 30, 2022 low of PLN4.5599.

• Reminder that preliminary data showed that Poland's CPI inflation slowed more than forecast to +14.7% Y/Y this month from +16.1% prior. While local analysts signalled that the momentum behind core CPI remains strong, market participants read the data as a dovish signal, with Polish FRA curve shifting lower as a result.
• Prime Minister Mateusz Morawiecki announced that Poland and other countries of the region have reached an agreement with the European Commission and their unilateral bans on the import of selected Ukrainian agricultural products will be replaced by an EU-wide regulation.
• POLGBs continue to trade on the front foot, yields sit 4.0-7.9bp lower, with 5s outperforming. The WIG20 Index operates ~1.1% lower on the session.