Zloty Ticks Lower Amid CE3 Underperformance

EUR/PLN is slightly firmer today, with the zloty coming under pressure alongside its CE3 peers, but the pair's general downtrend remains intact. The pair deals at 4.3330, up 126 pips on the session, with bulls looking for a break above the 20-EMA at 4.3897. On the flip side, bears look for an attack on the 4.30 figure which has not been breached since March 2020.

• The focus turns to flash November CPI and final Q3 GDP due tomorrow at 09:00GMT/10:00CET. The median estimate for headline inflation in a Bloomberg survey is +6.6% Y/Y, which would mean that October's annual pace of price growth has been maintained in the following month.
• Pro-EU coalition lawmakers tabled a draft bill in parliament that would extend existing caps on the prices of electricity, gas and heat through 1H2024. Its adoption may affect the inflation path, applying some downside pressure early next year and some upside pressure when the measures are withdrawn.
• POLGB yields are 3.0-6.3bp lower across the curve, with US Tsy space showing some strength as well. Poland sold PLN9bn of bonds at an auction yesterday and an additional PLN1.2bn at a top-up auction, attracting demand for PLN13.5bn.