Zloty On Back Foot, POLGB Yields Falter

EUR/PLN has added 35 pips and last deals at PLN4.7076, with bulls looking for a rally above Jan 19 high of PLN4.7453, which would open up scope for further gains towards and beyond the PLN4.7500 figure. Bears look for a dip through Jan 4 low of PLN4.6573, followed by Dec 26/Jun 21 lows of PLN4.6270/62.

• POLGBs are stronger across the curve and last are 7.4-9.8bp better off, despite trimming some of the initial gains. Benchmark 10-year yield has dropped to 5.9%, consolidating below the psychological 6% mark, which has proven magnetic in the past few weeks.
• The WIG20 Index has added ~1.2% this morning, albeit it still holds yesterday's range, with the broader consolidation phase still in play. The index has been trading sideways (with a light bearish bias) since printing new cyclical highs at 1,955 on January 11.
• Poland's central bank is expected to keep interest rates unchanged next Wednesday, according to all 7 economists polled by Bloomberg so far, with market pricing also pointing to a stand-pat decision. Members of the rate-setting panel have generally been standing by their familiar views, which means that the dovish wing still dominates.