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Zloty Slightly Weaker At Typing, NBP Matters Eyed Next Week


EUR/PLN is chewing into yesterday's losses, which resulted in a close below notable support from Feb 2 low of PLN4.6787. Today's upswing allowed the pair to have a look above that level, but it last deals +51 pips at PLN4.6777. A resumption of losses through Jan 4 low of PLN4.6573 would expose Dec 26/Jun 21 lows of PLN4.6270/62. Conversely, bulls look for a recovery towards Feb 22 high of PLN4.7654.

  • Poland's benchmark WIG20 index has shed ~1.6% thus far, with its regional peers also weakening. Local stocks may have come under additional pressure as the government revisited the idea of imposing a windfall tax on oil and mining companies.
  • POLGB yields have crept higher over the past hour or so and last are 0.9-8.0bp better off. The spread on 10-year POLGB/Bund yield remains below 400bp.
  • Markets participants are preparing for the NBP week. While policymakers are expected to keep interest rates unchanged, the updated economic forecasts may shed some light on the interest-rate outlook.
  • The MPC will conclude its two-day meeting on Wednesday, Governor Glapinski will likely hold his press conference the following day, while on Friday the central bank will publish the minutes of its previous meeting.

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