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Zloty Extends Losses, Gov't Bond Yields Advance

PLN

EUR/PLN keeps moving higher, broadly in line with EUR/USD. The rate has crossed above PLN4.7000 and tested its 200-DMA at PLN4.7120. A break above that level would allow bulls to take aim at Nov 22 high of PLN4.7177.

  • USD/PLN last trades +344 pips at PLN4.4747, having bounced off its worst levels in almost half a year printed today at PLN4.4132. Bulls look to force their way through the 200-DMA (PLN4.5545), which would expose Nov 16 high of PLN4.6252.
  • Local-currency bond yields have advanced and last sit 19.0-28.9bp higher across the steepened curve. Hungary/Poland 10-in year yield differential has tightened, while Poland/Germany spread is wider, as the increase in Polish yields outpaces key peers.

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