Zloty Outperforms Regional Peers, Forint Lags Amid Banking Sector Turmoil

The Polish Zloty has outperformed its regional peers as all three CE3 currencies sold off versus the greenback on the back of concerns about the condition of the European banking sector sparked by comments from Credit Suisse's top investor.

• The Zloty is the only regional currency to outperform the Euro, albeit EUR/PLN has now moved away from its intraday low of PLN4.6836 and last deals -53 pips at PLN4.6967. The rate went offered from around London noon despite the absence of major local headlines.
• The release of Polish CPI data grabbed attention in the morning. Although monthly inflation topped expectations, the annual figure was slightly lower than expected, while the January reading underwent the largest downward revision in history. The figures cement the case for continued rate stability.
• EUR/CZK ripped through resistance from Feb 6 high (CZK24.023) and showed above its 100-DMA (CZK24.038) before paring some gains and last deals +0.220 at CZK23.996. President Pavel has just said that he will sign the pension bill.
• PLN/CZK failed to test Jan 11 high of CZK5.1372 as the bullish run lost steam and the rate pulled back from its intraday high of CZK5.1319 to last trade +563 pips at CZK5.1113.
• The Forint is the worst regional performer after BNP Paribas recommended selling the currency. PLN/HUF soared through its 100-DMA and 200-DMA to last sit +2.34 figs at HUF85.10. CZK/HUF trades at HUF16.6431, struggling to make much headway beyond yesterday's peak.