Zloty Underperforms EMEA Peers

EUR/PLN resumes its short-term uptrend after a corrective pullback yesterday. From a medium-term perspective, however, the pair continues to operate close to its cyclical lows, with the zloty buoyed by election results from earlier this month.

• The rate last deals at 4.4644, up 130 pips on the session, while the zloty underperforms its EMEA peers. Bulls look for a break above the 50-EMA at 4.5226, while bears keep an eye on Oct 17/Jul 31 lows of 4.4096/4.3986.
• Third Way's Szymon Holownia called for facilitating coalition talks in order to "turn on the clock" for President Duda and pressure him to accelerate government formation.
• S&P said that there could be upward pressure to Poland's credit rating if the outcome of the elections leads to the improvement of institutional effectiveness.
• POLGB yields have inched lower, curve runs slightly flatter, with 5s outperforming. Polish FRAs are under mild pressure.