MNI China Press Digest July 2: PBOC, FDI, Land Revenue

MNI: PBOC Net Drains CNY298 Bln Via OMO Tues; Rates Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS TUES

MNI: PBOC Sets Yuan Parity Higher At 7.1291 Tues; -0.09% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1291 TUES VS 7.1265

MNI China Daily Summary: Monday, July 1

June CPI Below Market Expectations, Headline Y/Y At 2.4%

MNI: UK JUN BRC SHOP PRICES -0.2% M/M, +0.2% Y/Y

Multivariate Core Trend Inflation Falls To Post-2020 Low

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Zloty's Reaction To Benign Inflation Data Proves Short-Lived, POLGB Yields Stay Lower

PLN
EM BulletHomepagemarkets-real-timeBulletEmerging Market News

EUR/PLN briefly ticked higher in reaction to the release of below-expectation preliminary inflation readings for May. The move was promptly retraced and the rate last deals at 4.2530, little changed on the day. Bears look for a sustained move through 4.25 after probing the water below that level yesterday. A clean break would open up 4.2131, the 1.00 projection of the Jan 17 - Apr 9 - Apr 16 price swing. Bulls keep an eye on the 20-EMA, which intersects at 4.2732.

  • Headline inflation accelerated by just 0.1pp to +2.5% Y/Y, missing the consensus forecast of +2.8%. Local sell-side desks estimated core inflation at around +3.8-3.9% Y/Y. Some noted that the rise in food prices was relatively modest, considering the re-introduction of a higher VAT rate.
  • NBP's Wnorowski called the data a "very good piece of information" but quickly added that the central bank's task is to ensure the sustainability of disinflation. The official pointed to wage pressures and inflation expectations as key sources of concern.
  • POLGB curve has shifted lower, with 5s outperforming at typing. Price action has been at odds with regional peers, with POLGBs catching a bid in reaction to Polish inflation data amid a downtick in Polish FRAs.
199 words

To read the full story

Close

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 briefly ticked higher in reaction to the release of below-expectation preliminary inflation readings for May. The move was promptly retraced and the rate last deals at 4.2530, little changed on the day. Bears look for a sustained move through 4.25 after probing the water below that level yesterday. A clean break would open up 4.2131, the 1.00 projection of the Jan 17 - Apr 9 - Apr 16 price swing. Bulls keep an eye on the 20-EMA, which intersects at 4.2732.

  • Headline inflation accelerated by just 0.1pp to +2.5% Y/Y, missing the consensus forecast of +2.8%. Local sell-side desks estimated core inflation at around +3.8-3.9% Y/Y. Some noted that the rise in food prices was relatively modest, considering the re-introduction of a higher VAT rate.
  • NBP's Wnorowski called the data a "very good piece of information" but quickly added that the central bank's task is to ensure the sustainability of disinflation. The official pointed to wage pressures and inflation expectations as key sources of concern.
  • POLGB curve has shifted lower, with 5s outperforming at typing. Price action has been at odds with regional peers, with POLGBs catching a bid in reaction to Polish inflation data amid a downtick in Polish FRAs.