Zloty Edges Higher, Cyclical Highs In Play

EUR/PLN comes under renewed even if only modest selling pressure. Still, it has held a familiar range so far, after printing fresh cyclical lows at 4.2527 yesterday, with PM Tusk flagging preference for a "balanced" exchange rate when asked about the recent bout of PLN appreciation. The pair last sits at 4.2605, flirting with the lower Bollinger band at 4.2596. Bears look to force a breach of the psychological 4.25 figure before taking aim at Feb 2020 lows of 4.2371/62. Conversely, the 50-EMA provides the initial layer of resistance at 4.3100.

• Climate and Environment Minister Paulina Hennig-Kloska said that the plan to phase out energy price freeze from July will involve "energy vouchers" for 3.5mn households as well as other measures intended to mitigate the impact on vulnerable consumers. The NBP sees the unfreezing of energy prices as one of the key upside risks to its inflation forecasts.
• NBP First Deputy Governor Marta Kightley said that the current level of interest rates is optimal and it's hard to see reasons to cut them this year. She is not a member of the MPC but would stand in for Governor Glapinski should he get suspended.
• Poland will offer PLN5bn-7bn worth of POLGBs at an auction today.