Zloty Edges Lower, EUR/PLN Struggles To Stay Within Gov't's Preferred 4.40-4.60 Range

EUR/PLN struggled to establish itself within the government's preferred 4.40-4.60 range despite probing that territory in each of the past two trading days. The rate operates just above the ceiling of that range, last sitting +57 pips at 4.6108. Bulls look for gains towards Sep 12 high/round figure/61.8% retracement of the 2022 - 2023 downleg at 4.6971/4.7000/4.7072. On the flip side, the focus is on the 20-EMA, which kicks in at 4.5878.

• POLGB yields are little changed today as the space absorbed yesterday's developments: the unveiling of a $2bn US loan deal for Poland's defence modernisation (which may slightly reduce Poland's borrowing needs for next year), the announcement that PLN5-8bn of bonds will be offered at tomorrow's auction (versus PLN4-8bn signalled earlier), and the Finance Ministry's attempts to boost the attractiveness of its retail bonds.
• Poland's statistics bureau will publish flash September CPI readings on Friday. Headline inflation is expected to drop to +8.5% Y/Y under pressure from various pre-election measures deployed by the authorities.