Despite the relatively upbeat start to the
session, which saw the zloty edge up by
roughly 0.5% against the euro, the EUR/PLN
pair remained locked in consolidation mode
throughout most of the day obviously
determined to break past the 4.02 support
level, but the zloty was never really confident
enough to make it happen.
On the economic front the abundance of
data should keep the market busy
throughout the session. The June industrial
output numbers are on top of the agenda
and the slightly stronger reading we expect
could provide the zloty with some positive
inspiration, depending on the scale of the
potential negative spillover from the bond
market. In any case the US CPI should
draw most of the attention. A stronger
reading here would help soften the
persisting unfavorable risk appetite
conditions and would certainly be zloty
positive. Otherwise the zloty counter trend
rally will have a hard time moving past 4.00
EUR/PLN.
EUR/PLN just above 4.0 support.
(CSOB - Investment research)