EUR/PLN hits 1-month low, focus remains on Polish labor market data

The EUR/PLN and EUR/HUF currency pairings weakened on Monday, with the former hitting a one-month low, while the Czech koruna remained stuck at the intervention threshold EUR/CZK 27.0 of the Czech National Bank’s (CNB).

In addition, the CNB has intervened heavily in the liquidity market to ensure that the CZK does not drop below the threshold mark in September and during the first half of this month. Against this background, it is imperative to focus on the recent comments made by the central bank’s chief economist, Tomas Holub, who mentioned that neither the volume of interventions, nor the amount of FX reserves will influence the timing of the exit from the FX intervention regime.

Holub further added that the exit will take place if and only if the CNB Board is confident of sustainable fulfillment of the inflation target thereafter.

Meanwhile, markets remain focused on today’s release of Polish labor market data, those concerning employment and wage growth. It is to be noted that wage growth had recently accelerated in Poland and seems to be the driving factor behind the Polish central bank’s ignorance of more than two years lasting deflation in the country, KBC CE Daily reported.