Zloty Outperforms CE3 Peers After Release Of January Data

EUR/PLN extended losses after the release of the initial batch of January economic activity data this morning, with a faster-than-forecast PPI deflation and expectation-busting wage growth stealing attention. We summarised the data and snap sell-side reactions in earlier bullets.

• The rate last sits at 4.3169, down 111 pips on the session, with bears eyeing support area located just above Feb 1 low of 4.3069, followed by Dec 13 low of 4.2935. Bulls keep an eye on Feb 7 high of 4.3564.
• Finance Minister Andrzej Domanski refused to assess the current levels of the zloty, but said that many institutions expect its further appreciation amid the inflow of more EU funds.
• The WIG20 Index oscillates near neutral levels, close to fresh cyclical highs printed yesterday. The WIGBANK Index has added 0.4%, refreshing cycle highs. Minister Domanski said Warsaw-listed banks "have more space to pay higher dividends."