Zloty Continues To Appreciate, M'fing PMI Beats Expectations

EUR/PLN extends losses for the fifth consecutive session amid a broader risk-on tone and after Poland's S&P Global M'fing PMI topped expectations. The rate printed a session low of PLN4.6911 before reducing losses to last change hands -52 pips at PLN4.6995. Next key support is at PLN4.6787, the low print of Feb 2. Bulls look for a rebound above Feb 22 high of PLN4.7654.

• POLGBs have trimmed their initial losses but remain slightly weaker on the day, with the yield curve running a tad steeper at typing. The WIG20 index sits ~0.8% higher on the day, returning above its 50-DMA.
• Poland's manufacturing sector contracted in February, albeit at a slower pace, as S&P Manufacturing PMI improved to 48.5 from 47.5 recorded in January, beating the 48.0 consensus call.
• NBP's Tyrowicz said at an event yesterday that interest rates should be higher, while discussing rate cuts at this stage reduces the effectiveness of monetary policy. Her hawkish views on monetary policy are well documented but diverge from the MPC consensus.