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Zloty Outperforms, EUR/PLN Approaches Multi-Month Lows

PLN

The Zloty tops the EMEA scoreboard as CE3 currencies outperform in the region, with EUR/PLN last trading -133 pips at PLN4.5998. The rate is narrowing in on a multi-month low printed last Friday at PLN4.5947, our technical analyst flags Jun 9, 2022 low of PLN4.5781 as the next level to watch on the downside.

  • POLGB curve has bull flattened today, with yields sitting 4.1-6.4bp lower as we type. The WIG20 index has added ~0.4% but is yet to test recent cyclical highs.
  • The Zloty has shown resilience in the face of weak macroeconomic data released this morning, with industrial production, retail sales, construction output and PPI all missing forecasts. The focus now turns to flash CPI for April, due for release Friday.

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