EUR/PLN jumps above 4.5700 after NBP unexpected rate cut
|- The Polish zloty depreciates to the 4.5700 region.
- The NBP reduced the policy rate by 75 bps to 6.00%.
EUR/PLN rose to levels last seen in early May around the 4.5700 zone in response to the unexpected interest rate cut by the National Bank of Poland (NBP).
EUR/PLN now targets the 200-day SMA around 4.5900
EUR/PLN rapidly added to the weekly move higher after the NBP caught everybody off guard and reduced its policy rate by 75 bps to 6.00% at its monetary policy meeting on Wednesday.
The sudden move by the Polish central bank was the first rate cut since it raised rates to 6.75% (from 6.50%) exactly a year ago.
The NBP's decision to trim rates comes in a context of declining inflation, albeit still elevated by domestic standards. Furthermore, tracked by the CPI, consumer prices rose at an annualized 10.1% in August, retreating for the seventh month in a row after hitting highs past 18% in February.
EUR/PLN levels to consider
So far, spot is up 1.63% at 4.5671 and a breakout of 4.5900 (200-day SMA) would open the door to 4.6158 (monthly high May 1) and then 4.7233 (monthly high March 20). On the other hand, the next support emerges at 4.4545 (55-day SMA) seconded by 4.3985 (2023 low July 31) and finally 4.3753 (monthly low August 18 2020).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.