USD/PLN continues to shoot higher on surprisingly deep NBP rate cut, breaching 4.3200

Polish central bank cuts interest rates deeper than expected, draws criticisms.
Politics appear to be influencing central bank action rather than the economy.
Polish inflation is still in double-digit territory despite recent declines.

FXStreet Team FXStreet

The USD/PLN is pushing higher following an interest rate cut from the National Bank of Poland (NBP), sending the Polish Zloty (PLN) into a tailspin. The NBP cut their reference rate from 6.75% to 6% on Wednesday, and the move is sending the PLN to five-month lows, erasing much of 2023’s gains.

Polish annual inflation remains slightly above 10%, far below the peak of 18% from earlier this year but still well above the NBP’s target of 2.5%. The Polish economy is also showing signs of a deepening slowdown, and too much movement from the NBP could exacerbate problems for the Polish economy.

Polish central bank accused of political motivations

NBP Governor Adam Glapinski, an open supporter of the governing Law and Justice conservative party, has been criticized for the poorly timed rate cut. Marek Tatala, vice president of the Economic Freedom Foundation, publicly stated that the central bank has “joined the election campaign” using his position at the NBP to try and stoke popularity for the ruling party by easing borrowing costs.

Reductions to the inflation rate will help to make lending rates cheaper in the short term, but Polish politician Ryszard Petru noted in a statement that cutting rates will be “pro-inflationary”, which could make life harder for the Polish population moving forward.

USD/PLN technical outlook

The USD/PLN has broken well above the 100-day EMA on the daily candles and appears set to continue breezing past the 4.3000 psychological level as the PLN eats away at the progress made through the year. The USD peaked against the Zloty in late 2022 near 5.000, reaching a floor of 3.9354 in July.

Technical resistance currently rests at the upper bound of April’s consolidation zone, just below 4.5000, and any bearish resurgence will face dynamic support from the 100-day EMA that is beginning to rotate bullish from 1.4500.

USD/PLN Daily chart

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD eyes 0.7150 barrier nine-day EMA

AUD/USD inches higher after registering modest losses in the previous day, trading around 0.7130 during the Asian hours. The technical analysis of the daily chart indicates that the pair is moving sideways within the rectangle pattern, suggesting a consolidation as neither the bulls nor the bears have enough momentum to take control of the market.

USD/JPY trades below 160.00 intervention threshold; bullish bias intact

The USD/JPY pair attracts some sellers during the Asian session amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, the Israel-Lebanon truce prompts some profit-taking around the US Dollar and exerts downward pressure on the currency pair.

Gold defends 200-day SMA, rises toward $4,500

Gold is attempting a tepid recovery toward $4,500 on Thursday, as renewed optimism in the Mideast geopolitical front calms market nerves. This cautious optimism across Asian markets weighs on Oil prices, and diminishes the US Dollar’s safe-haven appeal, helping Gold stage a decent comeback from the weekly low of $4,424.

Hyperliquid: ETF demand, capital rotation fuel HYPE rally as Bitcoin melts

Hyperliquid price sustains an upward trend near its all-time high of $75.76 on Thursday after posting 80% gains in May, while Bitcoin (BTC) retraces below $65,000, triggering a market-wide panic.

Kevin Warsh takes the Fed helm: What it means for the US Dollar

The Federal Reserve moves away from the highly predictable "forward guidance" model of the Jerome Powell era to a new “Kevin Warsh environment”, characterized by less communication, more policy surprises, and an increased focus on the Fed's complex balance sheet.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.