Zloty Garners Strength But Struggles To Break Out Of Recent Range

EUR/PLN has shed 220 pips and last deals at PLN4.4457, although in the grand scheme of things it remains in consolidation mode, sticking to a well-defined range. The zloty is the best performer in the EMEA region. A breach of Jun 12 low of PLN4.4307 would confirm that the trend conditions remain bearish, opening up the PLN4.40 handle. Meanwhile, bulls look for a move through the 20-EMA at PLN4.4833.

• POLGB curve has flattened this morning, yields last sit +0.9bp to -4.9bp. This comes after a decent POLGB auction last Friday, with the Finance Ministry noting that Poland has now met around 89% of its borrowing needs based on the initial FY2023 budget. The spending plan is set to be amended, which may see Poland's net borrowing needs boosted by PLN40.1bn.
• Poland's economic calendar is virtually empty today, with data releases set to move into a higher gear on Wednesday and Thursday, when the local statistics office will publish a slew of economic activity indicators for May.
• Looking further afield, Fitch and S&P are scheduled to release their potential updates on Poland's credit rating after hours on Friday. No changes are expected on that front.
• Elsewhere in the region, participants eye monetary policy decisions from the NBH and CNB tomorrow and the day after respectively.