POLAND: Wibor Rates

• The USD remains fairly steady overall.
• But seeing some extension against the Pound and the SEK.
• GBP test session low versus the USD, and JPY.
• And Cable now eye 1.3156 2.0% 10-dma envelope.
• Some will look at 1.3163 initially, as the early key area.
• SEK is once again the poorest Currency versus the USD, with USDSEK now gaining 8.65% in a Month, and 1.35% for today.
• USDSEK test the psychological 10.00 level.

Chart source: MNI/Bloomberg

Worth keeping an eye on Eurozone 5y5y inflation swaps here after they have hit their highest intraday levels since 2014 today, hitting a high of 2.17%. This was above Friday's high of 2.11% and breached the intradays highs just below 2.13% seen in October and January.

• The driver is energy with oil moving above $125/bbl (with Brent having breached $130/bbl overnight) while European natgas (Dutch TTE) is now trading at E/MWh340 after first breaching E/MWh200 on Friday.
• The 5y5y inflation swap tends to be the preferred metric for market-based medium-term inflation expectations for ECB Governing Council members, so will be closely watched ahead of the ECB meeting on Thursday.

Source: Bloomberg, MNI