Zloty Creeps Higher Despite PMI Miss, Dovish NBP Speak From Over Long Weekend

EUR/PLN has now wiped out all of yesterday's gains, with the Zloty sitting atop the EMEA pile, despite some negatives crossing the wires over the long weekend and today. The pair last deals -221 pips at PLN4.5854, with bears looking for a move through May 30, 2022 low of PLN4.5599. Bulls keep an eye on the 20-EMA at PLN4.6205.

• Poland's S&P Global Manufacturing PMI fell to 46.6 in April from 48.3 prior, missing the consensus forecast of 47.9. The commentary noted that the "manufacturing sector suffered concurrent marked reductions in both output and new orders in April," as "high prices remained a continued challenge for clients, as did the generally uncertain business environment."
• Goldman Sachs warned last Friday that the Zloty's recent rally may have been overdone, as the NBP runs a "relatively more dovish" monetary policy than its regional counterparts. Goldman flagged a risk of a "token" rate cut from the NBP ahead of this autumn's parliamentary election, especially if inflation keeps easing.
• Two MPC members said over the weekend that the central bank could consider interest-rate cuts by the end of this year after the flash reading of CPI inflation for April came in cooler than expected. Elsewhere, Governor Glapinski said that the central bank's economic projection is being realised.
• POLGB yields remain in negative territory after an early-doors slide, they last sit 1.7-2.3bp lower across the curve. The WIG20 index sits ~0.9% higher on the session.
• Reminder that Poland will observe a public holiday tomorrow.