Zloty Takes Advantage Of Risk-On Tone Ahead Of NBP Rate Decision

EUR/PLN soared to its best levels since November 16 yesterday before retracing the bulk of those gains and extending its pullback into today's session. The pair last deals at PLN4.7328, down 188 pips on the day, with bears initially eyeing support from Feb 2 low of PLN4.6787. Conversely, gains past Nov 16 high of PLN4.7848 would reinforce the emerging bullish theme.

• POLGB yields have eased off today and last sit 11.6-16.2bp lower across the flattened curve, with benchmark 10-year yield back below the psychological 6% figure. The local equity benchmark WIG20 has added ~1.3% but holds a familiar range.
• The key item on the local docket is the NBP monetary policy decision. Governor Adam Glapinski is set to hold his presser tomorrow. With the MPC expected to leave interest rates on hold, Glapinski's language will draw most of the attention.
• Elsewhere, parliament is working on key legislation to unlock EU recovery funds. Tje lower house will vote on Senate amendments to the bill unwinding most of the ruling Law and Justice's party controversial reforms of the judiciary.