A mixed session for the Polish zloty on
Wednesday. The EUR/PLN got off to a
reasonably strong start of the day and the
pair was seen testing bids at 4.02, but with
bears back on the marketplace throughout
the region and political worries slowly
intensifying as Samoobrona threatened to
opt out of the ruling coalition, the zloty gave
back all of its gains and eventually ended
the day down around 0.5% against the euro.
The drop would have probably been even
deeper though if not for the Slovak central
bank intervention, which forced sellers in the
region to make a step backward just before
the end of trade.
With a first piece of macro data to be
released today and the government
confidence vote pushed forward in time till
next week, the market will probably take its
mind off politics today. We would look for a
gently softer than expected C/A reading but
unless the release shows a significant
deviation from the market consensus, the
zloty should take the numbers in its stride.
Meanwhile, softer global risk appetite again
weighs on emerging markets, so we could
see some additional PLN selling ahead of
the weekend.
(CSOB - Investment research)