KBC Market Research Desk
KBC Bank
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ECB’s Coeuré supports CEE assets
Industry to confirm sound economic growth in Poland
Both the forint and the zloty tangibly benefited from yesterday´s comments of ECB Executive Board member Coeuré and posted strong gains against the euro. Mr. Coeuré surprised markets by announcing that the ECB would temporarily buy more bonds than expected due to worries about lower market liquidity over the summer. While the forint strengthened by 1.3 % following the statement, the zloty gave up some early gains later in the session to close the day appreciated “merely” by 0.6 %. Regional government bonds (10Y) strengthened as well though their gains were rather limited.
Later in the day yesterday, Polish labour market data, namely slightly weaker corporate wage growth in April, might have contributed to the downslide of the zloty. On the other hand, the wages still grew by 3.7 % Y/Y which, taking into account persisting deflation, points to improving financial position of Polish households (and hence to their higher future consumption). Later today, the Polish statistical office will release data on industrial production and retail sales for April In our view, both indicators should confirm strength of the Polish economic growth at the beginning of the second quarter 2015.
This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.
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