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Zloty Gives Away Some Of Yesterday's Gains, PM Morawiecki Sees Room For Rate Cuts This Year

PLN

EUR/PLN is chewing into yesterday's loss this morning. The rate last deals +40 pips at PLN4.6921, with bulls looking for a break above Jan 19 high of PLN4.7453 before attacking the PLN4.7500 figure. Bearish focus falls on Jan 4 low of PLN4.6573, followed by Dec 26/Jun 21 lows of PLN4.6270/62.

  • POLGBs have extended gains and trade 4.0-7.4bp firmer across the curve. Benchmark 10-year yield refreshed cyclical lows at 5.66%. Poland/Germany 10-year yield differential has tightened and is approaching recent multi-month narrows.
  • Local equity benchmark WIG20 is little changed at typing. Elsewhere in the region, Czechia's PX Index is also little changed, while Hungary's BUX has softened.
  • Prime Minister Morawiecki said that an interest rate cut "possible and even probable" this year and would bring "relief to many families."

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