Zloty Loses Ground Alongside CE3 Peers, Data Under Scrutiny

EUR/PLN has crept higher as CE3 currencies underperform their EMEA peers, with POLGB yields sitting slightly lower across the curve. The currency pair last deals +71 pips at 4.3218, with bulls looking for gains past Feb 7 high of 4.3564. Conversely, a pullback under Mar 11 low of 4.2749 would signal the resumption of a downtrend.

• Poland's February wage and industrial production data surprised to the upside. While some local sell-side desks flagged that industrial output remains in longer-term stagnation, commentary around wage data focused on its inflationary implications. In ING's view, the current pace of wage growth is a much more significant reason behind inflation stickiness than the expiry of anti-inflation shields.
• PM Donald Tusk confirmed that the governing coalition is preparing to launch a probe into the conduct of Governor Adam Glapinski. A letter from three MPC officials critical of Glapinski, calling for a special MPC meeting to discuss the NBP's 2023 financial statement, suggests that this might be one of the areas of focus if parliament decides to summon Glapinski for hearings before a special committee.
• The WIG20 Index extends its recent losses and last sits 0.9% lower on the session, approaching the 2,300 area which supported price action in recent days.