Zloty Trades Flat, Cabinet Meeting Draws Some Attention

EUR/PLN remains in a horizontal trend around the 4.32 figure, with broader risk appetite in the driving seat yesterday. The focus turns to a Cabinet meeting, which may result in fresh decisions on amendments to the mortgage holiday programme and on the future of the suspension of VAT on food.

• The pair last trades flat at 4.3230, struggling to break out of its recent range. A clearance of Feb 7 high of 4.3564 would suggest that bullish momentum is picking up. On the flip side, bears see Dec 13 low of 4.2935 as their initial target.
• Moody's said that the unfreezing of EUR137bn in EU funds earmarked for Poland is positive for the nation's credit profile. According to the agency, should the government's reforms of the judicial system prove effective in restoring the rule of law, they would also be credit positive. Moody's is due to review Poland's sovereign credit rating on March 22.
• The NBP begins its two-day monetary policy meeting, with the rate decision and main parameters of the new macroeconomic forecast due tomorrow. Governor Adam Glapinski will hold a press conference to explain the decision and discuss the economic situation on Thursday. The central bank is widely expected to stand pat on rates this week.