Zloty Garners Strength As NBP Week Draws To End

EUR/PLN is under light pressure, last changing hands -193 pips at 4.4190, testing earlier intraday lows. Technically, bears look for a continued sell-off towards Oct 17/Jul 31 lows of 4.4096/4.3986. On the flip side, a break above Oct 25 high of 4.4898 would bring the 50-EMA at 4.4977 into play.

• A flurry of comments from NBP members crossed the wires this morning. Ludwik Kotecki and Przemyslaw Litwiniuk both said that the inflation target won;t be reached by 2026, while Joanna Tyrowicz unleashed another round of fierce criticism of Governor Adam Glapinski's conduct. Gabriela Maslowska's comments were broadly in line with the Governor's rhetoric from yesterday's press conference.
• Fitch may review Poland's credit rating after hours today, but most sell-side desks commenting on the matter do not expect any changes. Millennium Bank write that the rating and outlook will likely remain unchanged in 2024, as fiscal risks will be counterbalanced by a faster inflow of EU funds and a better assessment of Poland's institutional environment.