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Zloty Oscillates, POLGB Yields Climb

PLN

EUR/PLN has just round tripped from a fresh session highs (PLN4.7024) in sympathy with EUR/HUF, seemingly on no new headlines. The former rate last changes hands at PLN4.6920, down 35 pips on the day.

  • From a technical viewpoint, a descent past Jan 4 low of PLN4.6573 would bring Dec 26/Jun 21 lows of PLN4.6270/62 into view. Conversely, bulls look for a rally towards Dec 6 high of PLN4.7220.
  • POLGB yields have advanced today, retracing some of yesterday's downswing, with 5s underperforming. Benchmark 10-year government bond yield is on the brink of returning above the 6% mark, after its first foray below that level in several months. Poland/Germany 10-year yield differential has widened a tad, moving away from YtD narrows printed on Monday.
  • NBP hawk Kotecki said he expects inflation to approach +20% Y/Y in February and said it is "way too early" to talk about ending the rate-hike cycle, let alone discussing rate cuts.

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