Zloty Fluctuates Around Neutral Levels, POLGB Yields Falter Across Curve

EUR/PLN is little changed at typing, consolidating its losses from yesterday, when the Zloty outperformer in EMEA FX space. The rate touched its lowest point since Feb 6 this morning, bottoming out at PLN4.7212 while oscillating around neutral levels.

• Local newswire PAP has circulated comments from Millenium analysts who see limited potential for further PLN appreciation, with PKO BP research desk noting that they see EUR/PLN trading near PLN4.72 today.
• EUR/PLN trades -12 pips at PLN4.7240. The initial bearish target is provided by Feb 2 low of PLN4.6787. On the flip side, bulls look for a rebound above the 61.8% retracement of the Sep 30 - Dec 26 sell-off/Feb 14 high at PLN4.7945/4.7987.
• POLGB yields have declined across the curve and last sit 11.1-16.6bp lower as we type, with benchmark 10-year yield virtually erasing its weekly advance. The WIG20 index sits ~0.4% lower on the session.
• Local front pages are dominated by reports surrounding the anniversary of Russia's invasion of Ukraine, with Prime Minister Mateusz Morawiecki paying a visit to Kyiv today.