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Zloty Holds Onto Gains, NBP Rate Decision Eyed Tomorrow

PLN

EUR/PLN clings onto its earlier losses as participants prepare for tomorrow's announcement of the NBP's monetary policy review, which will be accompanied by a fresh macroeconomic projection. The spot rate last deals at PLN4.6877, down 43 pips on the day.

  • Overnight implied volatility briefly climbed to its highest point in almost two weeks but has retraced the move, while implied volatilities further out the curve have generally declined.
  • POLGBs hold firm, consolidating their gains from the start of the session. They last trade 7.8-9.6bp lower across the curve.
  • The NBP are universally expected to keep interest rates unchanged tomorrow, but their language and forecasts will be closely watched.

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