MicroVision MOVIA lidar gains support on NVIDIA DRIVE AGX platform
Investing.com - The Polish zloty weakened against the euro Tuesday, with EUR/PLN moving above 4.250 following disappointing economic data that strengthens the case for interest rate cuts by the National Bank of Poland (NBP).
Retail sales in Poland surprised to the downside on Tuesday, following weaker-than-expected industrial production data released Monday. These economic indicators are shifting Poland’s monetary policy outlook in a more dovish direction, according to ING.
The Polish interest rate swap (IRS) curve experienced a significant drop Tuesday, outperforming Central and Eastern European peers, while the interest rate differential in the two-year segment fell to its narrowest July levels. These market movements reflect growing expectations for NBP rate cuts.
ING maintains a bearish outlook on the zloty, forecasting EUR/PLN to move toward 4.280 levels. The bank notes that while the currency pair breached the 4.250 mark Tuesday, local market flows appear to be preventing a more substantial move higher for now.
The next significant data point will be Poland’s July inflation figures, scheduled for release next week, which ING believes will confirm a more aggressive rate cut path—potentially including a 50 basis point reduction in September.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.