Zloty Outperforms CE3 Peers as Elections Enter Focus

The Polish zloty is among the top performers in the EMEA space, though EURPLN is trading just 0.14% in the red at typing. Global conditions today are unsupportive of broader EM FX – the DXY index is 0.3% firmer while most major equity futures are trading in the red. Domestically, political risk will take centre stage in the coming days with Poland set to vote in high-stakes parliamentary elections on October 15. The final stage of the campaign is this evening's debate hosted by public TV.

• PLNHUF is trading a modest 0.55% higher on the day while PLNCZK is up a more muted 0.38% but at its highest level since the notable drop on the back of the unexpected 75bp NBP rate cut on Sep 06. Technical conditions in EURPLN remain bullish. Focus remains on the Sep 12 high/round figure/61.8% retracement of the 2022 - 2023 downleg at 4.6971/4.7000/4.7072. Bears look for losses past the 50-EMA at 4.5595.
• Elsewhere, the final readings of September CPI will cross the wires on Friday. Local analysts typically use final data to come up with more precise estimates of core inflation.