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Zloty Gives Away Yesterday's Gains, President Signs Budget Bill

PLN

EUR/PLN has almost fully clawed back yesterday's loss, largely thanks to the pressure applied to EM FX by an expectation-busting NFP report released out of the U.S. The rate last deals +148 pips at PLN4.7029, with bulls looking for continued gains past Jan 19 high of PLN4.7453 and towards the PLN4.7500 mark.

  • POLGB yields have bounced from earlier lows but remain under neutral levels, with bonds last trading 1.9-4.3bp richer across the curve. 10-year POLGB/Bund yield spread is within touching distance from cyclical narrows.
  • President Andrzej Duda signed the 2023 budget bill, which assumes a PLN68bn deficit. The legislation predicts CPI inflation at +9.8% Y/Y, with GDP growth seen at +1.7% Y/Y.

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