Free Trial

Zloty Surges On Gov Glapinski's Comments, PLN/CZK Hits New Highs Amid Contrast With CNB

PLN

The zloty has soared to the top of the EMEA scoreboard after NBP Governor Glapinski stated that the central bank is unlikely to lower interest rates this year, should the economy evolve roughly as expected. Note that the Governor added that he doesn't see an MPC majority behind rate hikes either this year.

  • The zloty's reaction is driven by the asymmetric distribution of rate expectations, with the market pricing a decent amount of monetary easing this year in the lead-up to this week's meeting. While Glapinski's comment playing down potential for rate hikes came as no surprise, his explicit pushback against further rate cuts took many off guard.
  • EUR/PLN stabilises and last trades -230 (-0.5%) pips at 4.3199, with bears looking for a break under Feb 1 low of 4.3069. USD/PLN operates -166 pips (-0.4%) at 4.0149, holding above the 4.00 figure.
  • PLN/CZK has surged 1.1% as the CNB cut rates by 50bp, with one policymaker voting for a 75bp reduction. The pair hit fresh cyclical highs at 5.8234 and last sits at 5.8126.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.