Zloty Weakens In Line With Regional Trend, NBP Rate Announcement Eyed

EUR/PLN has turned bid in morning trade as East European currencies have come under pressure, with the Czech Koruna and Hungarian Forint suffering even deeper losses. The rate last deals at PLN4.7007, up 104 pips on the day. From a technical viewpoint, gains past Feb 22 high of PLN4.7654 would support the bullish case, while bears set their sights on Mar 1 low of PLN4.6620, followed by Deb 26/Jun 21 lows of PLN4.6270/62.

• From a cross-asset perspective, POLGBs have slipped and last trade 2.4-3.6bp cheaper across the curve, while the local equity benchmark WIG20 consolidates yesterday's losses.
• The NBP are expected to keep interest rates unchanged today, but some have suggested that there is potential for the central bank formally communicating an end to its rate-hike cycle on the back of expected dovish revisions to macroeconomic forecasts. If such a declaration is to be made, it does not need to be included in the statement but could equally well be conveyed during tomorrow's press conference with Governor Glapinski.