Free Trial

Zloty In Consolidation Mode Ahead Of NBP Rate Decision

PLN

EUR/PLN changes hands +41 pips at PLN4.6778 as we type, holding yesterday's range, with the Zloty lagging its CE3 peers HUF & CZK. Technically, a break above Mar 20 high of PLN4.7215 would support the bullish case, exposing the 50.0% retracement of the Feb 14 - Mar 1 bear leg at PLN4.7304. Conversely, bears keep an eye on Mar 1 low of PLN4.6620.

  • POLGB curve has steepened this morning, with yields last seen -0.2bp to +3.0bp and 2-year/10-year spread moving away from multi-week narrows. Local equity benchmark WIG20 has added ~0.3% thus far.
  • The NBP will announce its monetary policy decision tomorrow (see our full preview here). With interest rates widely expected to remain unchanged, the focus will be on Governor Glapinski's press conference on Thursday. The market is well priced for an on-hold outcome but participants will continue to seek hints on the timing of the beginning of the rate-cut cycle amid the debate on its viability as soon as this year.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.