Zloty Prints Cyclical Highs, Inflation Data Eyed

EUR/PLN bears have the upper hand as the rate breached its recent trading range, moving to its worst levels since Sep 2020. The pair has ticked away from there and now sits -112 pips at 4.4132. Renewed sales through the 4.40 figure would bring Aug 28, 2020 low of 4.3822 into view.

• The upswing in PLN/CZK lost steam just above the 5.45 figure, failing to test resistance from May 11, 2022 high of 5.4534. The pair pulled back into negative territory and sits at 5.4303, with bears looking for losses towards the 50-DMA/Jul 14 low at 5.3281/14.
• USD/PLN is testing the 4.00 figure again, last dealing -280 pips at 4.0008. A clean break here would draw attention to 3.9357, which limited losses on Jul 18.
• Economists expect sequential consumer price growth to remain flat for the third consecutive month in July. Annual CPI increase is expected to ease to +11.0%. Preliminary data will hit the wires on Monday. The NBP pays much attention to current inflation prints, which adds to their importance.