Zloty Remain On Front Foot But Key Technical Levels Remain Intact

EUR/PLN traded with a slight bearish bias today but failed to challenge the nearby 100-DMA (PLN4.7157), 200-DMA (PLN4.7156) and 50-DMA (PLN4.7089). The rate last deals at PLN4.7246, down 7 pips on the session, as bears look for a dip through Feb 2 low of PLN4.6787, a key near-term support.

• POLGBs have given away the bulk of their earlier gains as the global FI space took a hit from above-forecast U.S. PCE data, which adds pressure on the Fed to continue tightening monetary policy settings. When this is being typed, POLGB yields trade 1.2-8.3bp richer across the curve, with 10-year POLGB/Bund yield differential unwinding its foray below 400bp.
• Prime Minister Mateusz Morawiecki arrived in Kyiv with a strong message of support, announcing that Poland has now delivered four Leopard 2 battle tanks to Ukraine, with 10 more such vehicles and 60 modernised PT-91 tanks due to follow in the coming days. He noted that Poland is ready to train Ukrainian pilots to fly F-16 fighter jets and called for tightening the EU sanctions regime on Moscow. Meanwhile, an opinion poll for Radio Zet showed that 74% of Poles support continued military support for Ukraine.