© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI: PBOC Drains Net CNY329 Bln Via OMO Fri; Rates Unchanged

MNI BRIEF: China, U.S. Discuss Currency, Financial Stability

CHINA PBOC INJECTS CNY499 BILLION VIA 7-DAY REVERSE REPOS FRI

Australia PPI +1.8% Q/Q; Building Construction Contributes

Japan Tokyo Oct Inflation +2.7% Y/Y

MNI JAPAN OCT TOKYO CORE CPI +2.7% Y/Y; SEPT +2.5%

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

MNI BRIEF:Macklem-Fiscal Policy Turning Unhelpful On CPI Fight

MNI BRIEF: Stabilizing Prices Helps BOC Turn Neutral-Freeland

Zloty Remains Under Pressure, EUR/PLN Refreshes Cyclical Highs

PLN
BulletEM BulletEmerging Markets NewsHomepage

EUR/PLN has moved through last week's post-NBP highs, testing the 4.65 figure as a result. The rate last deals at 4.6442, up 284 pips on the day, and a sustained break above the 50% retracement of the Sep 2022 - Jul 2023 bear leg/round figure resistance at 4.6483/4.6500 would strengthen the current bullish theme.

  • The local yield curve has bull steepened further, with the short-end leading gains. 2-Year/20-Year POLGB spread is the widest since January 2022. This segment was testing inversion territory no more than two months ago. The local FRA curve has also steepened as the market is pricing further NBP cuts in the near term amid suspicions that stubborn inflation could force a pause/slowdown of monetary easing further down the road.
  • Goldman Sachs wrote that they expect a "prolonged inflation overshoot" which should be "currency-negative over the medium-term". On the other hand, JP Morgan will be looking for opportunities to go long PLN against the CZK, but "this may require October elections to pass, which should reduce the overly easy bias from both monetary and fiscal policy".
  • Development Minister Waldemar Buda said the government continues to weigh an extension of "mortgage holidays" into early 2024 despite the NBP's 75bp rate cut last week, but final decision sits with the Prime Minister. Buda added that he expects the frozen EU recovery funds to unlocked by the end of this year, after the elections.
  • The controversial committee to investigate Russian political influence in Poland will convene before the elections, according to one of its newly appointed members. However, the panel will not have enough time to summon any witnesses.
265 words

To read the full story

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

EUR/PLN has moved through last week's post-NBP highs, testing the 4.65 figure as a result. The rate last deals at 4.6442, up 284 pips on the day, and a sustained break above the 50% retracement of the Sep 2022 - Jul 2023 bear leg/round figure resistance at 4.6483/4.6500 would strengthen the current bullish theme.

  • The local yield curve has bull steepened further, with the short-end leading gains. 2-Year/20-Year POLGB spread is the widest since January 2022. This segment was testing inversion territory no more than two months ago. The local FRA curve has also steepened as the market is pricing further NBP cuts in the near term amid suspicions that stubborn inflation could force a pause/slowdown of monetary easing further down the road.
  • Goldman Sachs wrote that they expect a "prolonged inflation overshoot" which should be "currency-negative over the medium-term". On the other hand, JP Morgan will be looking for opportunities to go long PLN against the CZK, but "this may require October elections to pass, which should reduce the overly easy bias from both monetary and fiscal policy".
  • Development Minister Waldemar Buda said the government continues to weigh an extension of "mortgage holidays" into early 2024 despite the NBP's 75bp rate cut last week, but final decision sits with the Prime Minister. Buda added that he expects the frozen EU recovery funds to unlocked by the end of this year, after the elections.
  • The controversial committee to investigate Russian political influence in Poland will convene before the elections, according to one of its newly appointed members. However, the panel will not have enough time to summon any witnesses.