Zloty Knee-Jerks On EU Headlines But NBP Presser Is Front & Centre Today

The zloty knee-jerked lower as the European Commission launched infringement proceedings against Poland over its controversial Russian influence law, but the impact on FX markets has been short-lived. EUR/PLN last trades at PLN4.4694, down 55 pips on the day, after printing new cyclical lows at PLN4.4680 this morning.

• From a technical point of view, the rate continues to struggle to stage a sustained breach of the floor of a bear channel which today kicks in at PLN4.4680. Below there, the next key bearish target is provided by Jun 7, 2021 low of PLN4.4360. Conversely, bulls look for recovery above Jun 1,May 18 highs of PLN4.5480/4.5547.
• Governor Adam Glapinski will hold his press conference at 14:00BST/15:00CEST to explain the latest monetary policy decision and discuss the NBP's assessment of the economy. Click here to see our preview of the decision and here to see a summary of sell-side views released since yesterday's rate decision.
• Recent developments point to renewed intensification in the chaos in Poland's judicial system. The government said it will keep the Turow lignite mine running despite a court order to suspend operations, while Prime Minister Morawiecki said that he will ask the Constitutional Tribunal to rule on what constitutes a full bench of its judges. This comes after the Supreme Court decided to re-open a case against pardoned Interior Minister Kaminski, defying a Constitutional Tribunal ruling.