Zloty Near Neutral Levels Ahead Of NBP Rate Decision This Week

EUR/PLN trades at PLN4.7184 this morning, up 8 pips on the day, with eyes on an NBP monetary policy decision this week. Further gains past Jan 19 high/round figure of PLN4.7453/4.7500 would suggest scope for a stronger rally. Conversely, bears look for a drop under Feb 2 low of PLN4.6787, which would bring Dec 26/Jun 21 lows of PLN4.6270/62 into view.

• POLGB yields have soared across the curve as the broader FI space comes under pressure, with the impact of robust U.S. jobs market data released last Friday reverberating across global markets. Poland's benchmark 10-year yield has climbed to 5.86% after printing new cycle lows at 5.63% last week.
• The WIG20 Index has shed ~0.9% this morning but remains in consolidation phase, struggling to break out of a well-defined range. Elsewhere in the CE3 region, Hungary's BUX trades on the defensive, while Czechia's PX has posted some marginal gains.
• The NBP are widely expected to keep interest rates on hold this Wednesday (consensus is unanimous in this regard). Governor Adam Glapinski's press conference, due the following day, will be under scrutiny for any signs of a shift in the rate-setting panel's overall stance.