Zloty Holds Onto Gains After Dynamic Rebound This Morning

EUR/PLN consolidates earlier losses, despite the recovery in greenback crosses in reaction to US data. Today's move negates yesterday's gains, with little in the way of domestic catalysts seen driving the pair on either swing, as the focus remained on external developments. At typing, EUR/PLN trades -311 pips at 4.4465.

• Statistics Poland will release flash June CPI figures tomorrow. Economists in a Bloomberg survey expect headline inflation to have eased to +11.8% Y/Y from +13.0% prior. The median estimate in local PAP newswire's poll is +11.7% Y/Y.
• Local financial news outlets circulated comments from Bank Millennium economists, who said that the current macroeconomic conditions do not justify imminent rate cuts, but it cannot be ruled out that the MPC will lower rates already this autumn if inflation eases below +10% Y/Y.
• Elsewhere, the government sharpened its rhetoric on the EU's migrant relocation plan, with Prime Minister Morawiecki pledging to veto any such mechanism. Poland had earlier announced that it will hold a referendum on the matter, possibly alongside the upcoming parliamentary election.