Zloty Loses Ground, Current Account Data On Tap

EUR/PLN has crept higher and last sits at 4.4569, up 135 pips on the day. Bulls look for further gains through the 50-EMA (4.4888) and towards the 4.50 figure. Bears see Jul 4 low of 4.4138 as their initial target.

• Parliament approved an adjustment to Poland's fiscal rule, which will give the government more leeway to boost defence spending. Pekao write in a research note that the changes were expected, while the fiscal rule is amended so often that it is no longer seen as a credible stabilisation mechanism.
• NBP's Iwona Duda said that the timing, scale and pace of monetary easing will depend on "many conditions." She reaffirmed the conditions for lowering interest rates outlined by Governor Glapinski and pointed to data-dependence.
• Final June CPI reading confirmed inflation at +11.5% Y/Y, with local sell-side desks estimating core inflation at around +11.1% (official figures won't be out until Monday). The data doesn't change much in terms of NBP rate outlook.
• Poland will publish May current account balance at 13:00BST/14:00CEST. The pace of its improvement slowed recently and participants will want to see if this trend continued, potentially undermining the zloty.