Zloty Rangebound Ahead Of Core CPI, POLGBs Lose Ground

EUR/PLN dipped into the London morning but quickly retraced that move and last deals at PLN4.6906, barely changed on the day. From a technical standpoint, a break above Dec 6 high of PLN4.7220 would please bulls, while bears keep an eye on Nov 30 low of PLN4.6595.

• POLGB yield curve has bear steepened this morning, with yields last seen 6.9-18.9bp higher across the curve. Poland's local-currency bonds have come under pressure from weakness in the broader FI space, albeit they have underperformed CEE peers (Czechia, Hungary, Romania). Some additional pressure could stem from a delay in parliamentary debate over court legislation that needs to be adopted as part of a deal to unblock EU funding.
• There has been little impact from around of comments by NBP's Maslowska, who told a local radio station that the next move in rates could be a cut, which could come in 2024. Maslowska belongs to the dovish wing of the MPC.
• Poland's core CPI data for November will cross the wires this afternoon.