After a failing to extend Wednesday’s rally past 3.95 the Polish zloty held to a tight range around 3.96 on Thursday, with all eyes fixed on the inflation numbers and next week’s budget showdown. The CPI report had no visible impact on trading though as bonds suffered only slightly and monetary policy expectations remained basically intact. Now it’s time for the US CPI report due out today which could provide markets in the region with some short term direction .
With just the wage numbers on the domestic eco calendar the focus should be on the EUR/USD today in the run-up to the inflation data. In the meantime we expect more sideways trading for the zloty in the 3.9500-3.9750 EUR/PLN range.
(CSOB - Investment research)