Zloty Stabilises After Yesterday's Sharp Sell-Off

EUR/PLN rallied yesterday as high-beta FX faltered amid negative risk sentiment, with the zloty possibly coming under some additional pressure amid reports that Belarussian military helicopters violated Poland's airspace. While EUR/PLN moved away from the 4.40 area yesterday, the rally has lost steam and the pair last deals at 4.4410, down 74 pips on the day. Bears eye a re-test of Jul 31 low of 4.3986, while bulls keep an eye on the 50-EMA at 4.4679.

• USD/PLN consolidated above the 4.00 round figure yesterday and last changes hands at 4.0441, down 53 pips on the session. A dip through Jul 18 low of 3.9357 is needed to reignite bearish momentum. Bulls look for gains towards the 50-EMA at 4.0714.
• NBP's Wnorowski said that a double-digit inflation reading for August would call a September rate cut into question or rule it out entirely. He expressed disappointment with the pace of disinflation in July and said that while the +10% Y/Y level is symbolically significant, the NBP's target is +2.5% +/1 1pp.