Zloty Inches Higher, Data-Heavy Week Ahead

EUR/PLN trades slightly on the back foot, last -19 pips at 4.3304, with POLGB yield curve bull steepening a tad. Technically, bears look for a dip through Dec 13 low of 4.2935 and further towards Mar 4, 2020 low of 4.2870. On the topside, the focus falls on the 20-EMA at 4.3439.

• The NBP will release core CPI readings for November at 13:00GMT/14:00CET. Looking further afield, the docket is tightly packed with local data prints this week, with PPI, industrial output, wages, employment and consumer confidence all coming up Wednesday.
• Domestically, the new coalition is about to start the process of adopting a revised 2024 budget, which is expected to involve a wider fiscal gap on the back of the implementation of some new measures by the previous government and the new administration's plan to make good on key campaign pledges.
• While the NBP is done with its monetary policy meetings this year, participants continue to monitor speculation surrounding the scenario whereby Governor Glapinski could be put on trial. Elsewhere in the region, the NBH and CNB are due to announce their rate decisions on Tuesday and Thursday respectively.