Polish Zloty Stable Against Euro, Market Awaits NBP Governor’s Statement

The Polish zloty held steady against the euro on Friday, with EUR/PLN trading within a narrow range around 4.28. The latest inflation figures for August did not significantly impact the currency market. Bond yields decreased, following their recent rise on Thursday. Economists anticipate that the National Bank of Poland (NBP) governor’s statement next week, along with U.S. job market data, will be crucial for market sentiment. The zloty’s resilience at the 4.28 level indicates a potential short-term equilibrium point. The market is now focused on the upcoming NBP governor’s conference, hoping for insights into the future course of monetary policy. August saw a subtle shift in the NBP governor’s tone compared to July, and his upcoming statements are eagerly awaited. In the bond market, yields declined across the curve, reflecting a pullback from recent increases. The release of details regarding the 2025 budget bill provided further context for the market’s recent behavior, with an initial nervous reaction followed by a calming period. This shift in the bond market should not be seen as directly connected to underlying market movements, which remain relatively stagnant with a slightly upward trend.