Zloty Edges Higher, NBP Speak Under Microscope

EUR/PLN last changes hands at 4.2992, around 40 pips lower on the session, as the dust settles after last Friday's NBP press conference and rating reviews (expected affirmations from both S&P and Fitch).

• From a technical perspective, bears look for a move through Apr 9 low of 4.2527 and the round figure of 4.25. On the flip side, bulls see Apr 16 high of 4.3728 as their key near-term target.
• POLGB curve runs steeper, yields sit 0.8-5.2bp higher. The WIG20 Index is little changed after Friday's pullback from cyclical highs.
• PLN/CZK has come under pressure from hotter than expected Czech CPI data, with bears eyeing support from May 3 low of 5.7573.
• MPC's Wnorowski said that the prospect of cutting rates has become slightly more distant, pointing to inflation expectations as a key factor.
• MPC's Ludwik Kotecki reiterated that there is currently no room for loosening monetary policy.
• The NBP will release the minutes of its April monetary policy meeting at 13:00BST/14:00CEST. The document should not have much market impact, given its backward-looking nature and significant delay relative to the covered meeting.