Zloty Returns To Neutral Levels, WIG Banking Index Under Pressure

EUR/PLN lost some altitude in afternoon trade, easing off alongside EUR/CZK, while EUR/HUF crept higher. This leaves it trading at PLN4.6982, barely changed on the day, as it has now ticked away from intraday lows towards neutral levels. Familiar technical levels remain in play, as the rate holds onto yesterday's range.

• Poland's financial regulator KNF urged some of the largest local banks to hold off on dividend payouts until the Court of Justice of the European Union rules in a case surrounding CHF mortgage loans. PKO, Santander and ING have confirmed that they were asked to wait with dividend payments.
• The WIG20 index has shed ~1.2% thus far and is probing the water under its 200-DMA. The equity benchmark may be taking its cue from a ~2.8% decline in the WIG Banking Index, which is weighed on by the regulator's request that some local lenders suspend dividend payouts.
• POLGB yields curve runs slightly flatter as the longer-end leads gains with a bullish impetus still evident. The space has regained poise after coming under pressure in the early part of the session.