Zloty Manages To Outperform CE3 Peers On Weekly Basis, Koruna Lags Behind

The Polish Zloty has been the best performer in CE3 space this week, mostly due to yesterday's advance, with PLN/CZK printing new two-week highs today. A key near-term support area for the pair has been defined around the CZK4.95 figure, where the rate lodged all-time lows earlier this month.

• The PLN may have drawn some support from comments offered on Thursday by NBP's Wnorowski, who is classified as one of the dovish policymakers advocating interest-rate stability. He noted that any talk of rate cuts would be premature at this stage and reiterated that the tightening cycle has not been formally ended.
• EUR/HUF hovers above the HUF380 figure, adding a handful of pips today, with market participants awaiting the NBH's monetary policy decision next week. Hungary's Prime Minister Orban said he expects inflation to slow next month and reach single-digit levels by the year-end.
• PLN/HUF clings to a familiar range, with the downward technical trend still intact, despite modest gains registered today. The pair's 100-DMA has now crossed below the 200-DMA, which comes after the materlialisation of a 50-DMA/200-DMA golden cross in early February.
• On an YtD basis, the Hungarian Forint remains the strongest CE3 currency. The Czech Koruna comes second, benefitting from steady support provided by the CNB's current FX regime. The Polish Zloty lags behind and is the only CE3 currency to have underperformed the Euro this year.