Zloty Trades Flat Amid Post-Election Musings

EUR/PLN holds steady at 4.4538 as wider risk aversion counters the recent positives for the zloty. It is worth noting that today's stabilisation comes after the pair corrected its spectacular post-election sell-off yesterday. Technically, the 50-EMA provides the initial layer of resistance at 4.5390. Meanwhile, bears eye support from Oct 17/Jul 31 lows of 4.4096/4.3986.

• Poland's industrial output fell 3.1% Y/Y in September versus -2.7% expected while average gross wages fell 10.3% Y/Y against the -10.7% median estimate. Factory-gate inflation printed at -2.8% Y/Y, close to the -2.7% consensus forecast. Employment growth was in line with expectations at 0.0% Y/Y.
• Market participants continue to monitor the process of government formation. President Andrzej Duda's Chancellery confirmed that next week the head of state will hold consultations with the representatives of parties which made it into the new parliament.
• POLGB yields are lower, curve runs slightly steeper, amid higher global yields. Local FRA contracts have ticked higher but hold familiar ranges.