Zloty On Back Foot, NBP Takes Centre Stage

EUR/PLN has gained for the second consecutive trading day and last changes hands at PLN4.7315, up 139 pips on the day. The pair has left Jan 26 high of PLN4.7311 behind and bulls now look for an attack at key resistance from Jan 19 high/round figure of PLN4.7453/4.7500.

• POLGB sell-off has ground to a halt, with yields consolidating earlier gains. Benchmark 10-year POLGB/Bund yield differential has widened, but remains near cyclical narrows.
• The WIG20 is now down ~1.6% on the session but remains in a well-defined channel. It underperforms regional peers BUX (-0.9%) and PX (-0.3%).
• The NBP said in a survey of loan committees at Polish lenders that local banks will continue to tighten criteria for consumer and corporate loans this quarter, with the harshest tightening set to affect consumer loans.
• All eyes are on the NBP's monetary policy decision this week. Click here to see our full preview.