The Polish zloty edged higher early on Wednesday benefiting from the renewed interest in government bonds ahead of the 5Y auction and the inflation data later in the day. Despite the upbeat start of the session the EUR/PLN pair found it hard to break past the 3.77 support level and settled into range trade ahead of the macro figures. In the meantime the MinFin denied that it conducted FX deals in January, putting an end to speculations that it had been present on the market last month. Whether it will be able to say the same thing next month remains to be seen. According to market rumors the zloty’s buoyancy last week was caused largely by such operations. The ministry confirmed that it would continue to present the statement concerning FX market operations on a regular basis on the 15th of each month. Despite coming in softer than the market’s expectations the inflation and wage figures had no relevant impact on the zloty.
The eco calendar is empty today, hence we expect the Polish currency to remain range traded at historically high levels today.
(CSOB - Investment research)