PLN: Zloty Depreciates But Holds Earlier Range, Markets Re-Open Briefly In Midst Of Holidays

The uptick in EUR/PLN this morning keeps the pair within a familiar and relatively narrow trading range. The rate last deals at 4.3313, up 85 pips on the session. POLGBs are firmer across the curve, in line with wider sentiment. The WIG20 Index operates 0.3% above neutral levels. The local calendar suggests that liquidity may be limited today, with markets re-opening just for one day between a public holiday yesterday and another one tomorrow.

• With EUR/PLN holding a familiar range, from a technical perspective, gains past Apr 16 high of 4.3728 would reignite bullish momentum. Conversely, key support is at Apr 9 low of 4.2527, followed by the psychologically significant 4.25 figure.
• The zloty is the worst performer in the region, even as it lags the koruna only by a very narrow margin. PLN/CZK sits at 5.8010 and is again testing the ascending the 100-DMA (5.7947), which has supported price action in recent days. PLN/HUF trades at 89.92 and is also pressing upon its 100-DMA (89.85), which had earlier limited losses in January.
• Poland's S&P Global Manufacturing PMI deteriorated to 45.9 in April from 48.0 prior versus 47.9 expected. The accompanying commentary noted that the country's "manufacturing downturn was extended into April, marking the longest period of continuous decline since the survey began in 1998." In addition, "price pressures remained weak, with input costs posting a renewed decline and output prices falling for the thirteenth straight month."