Zloty Edges Higher, NBP To Decide On Rates Tomorrow

EUR/PLN has shed 30 pips so far to last trade at 4.3383, with the recently breached key support/mini-double top neckline at 4.3447 providing a firm layer of resistance. Bears look to force renewed sales past Feb 1 low of 4.3069 and towards Dec 13 low of 4.2935. On the flip side, a clearance of 4.3447 would open up Jan 17 high of 4.4124.

• The focus turns to the NBP's rate decision this week. The central bank will release its statement, but there is a virtually universal expectation that interest rates will remain on hold. Governor Glapinski's press conference on Thursday will be of more interest, with market participants looking for fresh guidance.
• POLGBs have firmed across the curve, with yields last seen 1.6-3.4bp lower. The FRA market has priced out some monetary easing over the past few days, but positioning remains more dovish than consensus.
• The WIG20 Index has stabilised after yesterday's pullback as reports of the ongoing replacement of management boards in SOEs continue to trickle through.
• On the political risk front, the ruling coalition is considering further moves on the Constitutional Tribunal stacked with loyalists of the previous administration.