Zloty Depreciates After Weak Round Of Data

The zloty lags all its EMEA peers other than the RUB and TRY after the release of weak local activity data, which may support dovish NBP expectations. When this is being typed, EUR/PLN trades +173 pips at 4.4765. From a technical perspective, bulls look for a break above Jul 6 high of 4.5040, while bears keep an eye on Jul 31 low of 4.3986.

• Commenting on the activity data, local sell-side desks pointed to continued stagnation of employment, a return to negative real wage growth, deeper-than-expected contraction in industrial output and the beginning of decline in producer prices. Today's round of data should support the case for imminent NBP rate cuts.
• Note that the MPC pushed back their next monetary policy meeting by a week to September 12-13. The central bank did not give any reason for the change of schedule and the MPC will not receive any additional data due to the delay. The Council has also postponed its non-decision meeting from today until August 28.
• Local data releases will resume tomorrow, with construction output and retail sales due for publication at 09:00BST/10:00CEST.