Zloty Strengthens Ahead Of NBP Rate Decision Despite Worrying Report On Stray Missile

EUR/PLN is under pressure in the lead-up to the announcement of the NBP's monetary policy decision later today. The rate has now fully unwound gains registered in the wake of Russia's full-scale invasion of Ukraine last year and trades at levels last seen on the even of the attack. Recent PLN appreciation may support the central bank's "wait-and-see" approach and hopes for an earlier start of the easing cycle, with interest rates widely expected to remain on hold today (see our full preview here).

• EUR/PLN las trades at PLN4.5411, down 120 pips on the session. Recent losses open up scope for a move towards Feb 23, 2022 low of PLN4.5252 as well as the PLN4.5 figure. Bulls continue to see the 20-EMA at PLN4.5951 as their initial target.
• Looking at Polish markets, POLGBs are stronger across the curve, last trade 1.7-3.2bp richer. The WIG20 Index sits just above neutral levels, holding a familiar range.
• RMF FM reported that a projectile recently found near Bydgoszcz could be a Russian cruise missile Ch-55, possible fired by a warplane during a strike on Ukraine.