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Zloty On Back Foot, NBP Rate Decision Eyed This Week

PLN

EUR/PLN has ticked higher to last deal +76 pips at 4.3155. The rate continues to operate within a well-defined range, with bulls looking for a break above Apr 16 high of 4.3728. On the flip side, bears keep an eye on Apr 9 low of 4.2527 and the round figure of 4.25.

  • POLGBs have found some support in wider demand for FI, yields last sit 1.1bp-2.9bp lower on the session. The WIG20 Index refreshed cyclical highs before pulling back.
  • The Cabinet will discuss the proposed adjustments to the existing energy price cap. Their final shape may affect the inflation path and, by extension, the rate outlook.
  • It remains to be seen if the NBP or its Governor mention energy subsidies in official communications accompanying the rate decision (consensus: unch.) this week.

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