Zloty Slips Despite Solid Retail Sales Outturn

EUR/PLN has crept higher after the release of local retail sales data, but there has been little in the report that could potentially pressure the zloty on first glance. Retail sales topped forecasts, supporting expectations of a recovery in household consumption this year. Meanwhile, the upswing in EUR/PLN roughly coincided with moves in EUR/CZK and EUR/HUF, albeit with a slight lag relative to the other two EUR/CE3 pairs.

• All in all, EUR/PLN continues to hold a familiar range, now pulling back from earlier intraday highs. It sits +38 pips at 4.3215, with the boundaries of its recent trading range proving resilient. Bulls set their sights on Feb 7 high of 4.3564, while bears take aim at Feb 1 low of 4.3069.
• Head of the parliamentary Public Finance Committee told PAP newswire that the ruling coalition is determined to table a motion to probe NBP Governor Glapinski by the end of March. A motion by 115 lawmakers would establish a special panel, which would investigate the matter and issue a recommendation on whether to press charges in the Tribunal of State. Bringing a case to the Tribunal would automatically trigger Glapinski's suspension as NBP Governor.
• MPC's Ludwik Kotecki refused to rule out rate cuts this year, arguing that inflation will keep falling, despite the expected temporary rebound in 2H2024. The policymaker said he expected a "very slow" normalisation of interest rates.