Zloty Finds Poise Despite Familiar Concerns

EUR/PLN has sold off sharply despite the apparent absence of notable local headlines after the release of below-forecast preliminary GDP readings this morning. The rate has pulled back from a fresh four-month high as a result and last trades -173pips at PLN4.7691.

• Poland sold PLN5.6bn of POLGBs today, attracting demand for PLN8.27bn, according to an update from the Finance Ministry. POLGB yields have moved away from session lows and last sit 1.6-3.0bp shy of neutral levels.
• The WIG20 index remains afloat, finding support in its 50-DMA, even as the ECJ's ruling on Polish FX loans looms large. The court may rule in the case this Thursday. Headlines surrounding the matter had previously pressured local bank stocks.
• Prime Minister Morawiecki played down concerns about President Andrzej Duda's decision to refer the judiciary reforms passed by parliament to the Constitutional Court. The Premier called the decision "correct" given the President's reservations.