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Zloty Struggles For Clear Direction, EUR/PLN Consolidates Below 4.30

PLN

EUR/PLN consolidates below the key 4.30 threshold, last dealing at 4.2896. The initial bullish target is provided by Feb 7 high of 4.3564. Conversely, bears look for a move towards Feb 14, 2020 low of 4.2371.

  • Millennium Bank wrote that the government's decision to reinstate 5% VAT on food will boost 2Q24 inflation by 0.8pp and average 2024 inflation by 0.3pp. They think that the decision will not affect the interest-rate path, seeing very limited room for the NBP to loosen monetary policy this year and next.
  • POLGB yields are higher, curve runs slightly steeper. The Finance Ministry will offer PLN6bn-9bn of OK0426, PS0729, WZ1129, DS0432, DS1033 and WS0437 bonds at an auction today.
  • The WIG20 Index is little changed on the day after a 2.3% upswing yesterday.

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