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Zloty Loses Ground Amid Risk-Off Feel & Local Holiday

PLN

The zloty has depreciated in line with regional sentiment, as liquidity is thinned by a public holiday in Poland. The wider EM FX space is under pressure amid red flags in China's economic activity data and higher US yields.

  • EUR/PLN last trades +234 pips at 4.4729. Technically, trend conditions remain bearish, albeit the rate remains stuck in a familiar range after failing to stage a convincing break below the 4.40 figure late last month.
  • The key near-term bullish target is provided by 4.5040, the high print of Jul 6. Conversely, bears keep an eye on 4.3986, which limited losses on Jul 31.
  • Poland's election campaign remains under scrutiny. The government has formally asked parliament to approve a referendum to be held alongside the upcoming elections.

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