Zloty Outperforms After Release Of Above-Forecast GDP Data

The Polish zloty outperforms in the EMEA space by comfortable margins, while EUR/PLN staged a failed attack on support from a pair of intraday lows printed in February 2022 at PLN4.4828/26. The rate sold off following the release of expectation-busting flash Q1 GDP data out of Poland, albeit the move was slightly delayed relative to the publication of the data.

• Preliminary figures showed that Poland's economy grew 3.9% Q/Q in the three months of the year, surpassing all estimates in a Bloomberg survey of 12 economists. The annual contraction was 0.2% Y/Y versus -0.9% expected. Official data with a detailed breakdown into components will be published on May 31, but local analysts suggested that services and exports may have boosted headline numbers despite weak household consumption.
• EUR/PLN last changes hands -123 pips at PLN4.4911, with bears looking for a clean breach of aforementioned support levels at PLN4.4828/26. This would expose Jun 7, 2021 low of PLN4.4360. Conversely, bulls keep an eye on the 20-EMA, which kicks in at PLN4.5662.
• POLGBs have unwound initial gains and yields last sit 0.3-0.9bp higher across the curve, even as their regional peers remain afloat. The WIG20 Index sits ~0.5% higher on the day.
• The focus remains on local data, with core CPI coming up at 13:00BST/14:00CEST.