Zloty Refreshes Session Highs As WIG20 Breaks Above 200-DMA

EUR/PLN is retesting session lows at the time of typing, despite a mild rebound off intraday lows in EUR/USD. The rate last deals at PLN4.6892, around 70 pips worse off, after printing new weekly lows at PLN4.6850.

• Domestic headline flow has been relatively quiet today, with NBP's Dabrowski flagging expectations of a continued pause in the rate-hike cycle. Elsewhere, the local media are circulating comments from Poland's Energy Minister Moskwa, who said that the government will today approve legislation freezing gas prices in 2023 at levels from this year and implementing targeted subsidies for low-income households. The cost of the gas price cap bill is estimated at PLN30bn.
• Possibly aiding the Zloty is a move higher in WIG20, which has now crossed above its 200-DMA. A close above that moving average would represent a bullish development, bringing Nov 15 high of 1,785 into play. Elsewhere in the V4 region, Czechia's PX index is down 0.12% and Hungary's BUX index is up 0.76%.