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Zloty Inches Lower, Gov't Discusses Wages

PLN

EUR/PLN trades +31 pips at 4.3361 and a clearance of Apr 16 high of 4.3728 would reignite bullish momentum. Meanwhile, a dip through Jun 6 low of 4.2727 would expose the 4.25 area, which limited losses the second half of May.

  • Fiscal matters move to the forefront, as the government debates next year's increases in the minimum wage and public-sector wages. The Finance Ministry reportedly proposed only minimal increases, with the Family, Labour and Social Policy Ministry pushing for larger hikes. Robust wage growth remains an important source of concern for the NBP, as per recent communications.
  • POLGB yields are a touch higher across the curve. The WIG20 Index has shed 0.7%, but has held yesterday's range so far.
  • The NBP will release current account data and trade data for April at 13:00BST/14:00CEST.

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