Poland's recent financial maneuver aimed at raising PLN 6 billion through the issuance of 45-week Treasury bills fell short, with the government securing only PLN 4.88 billion. This development comes amidst a backdrop of varying economic indicators within Central and Eastern Europe (CEE). While Poland grapples with fluctuating housing affordability, other countries in the region, such as Czechia and Slovakia, have witnessed a decrease in housing prices, juxtaposed against rising incomes.
Reliable sources provide the data underpinning these insights, although Erste Bank Sparkassen (CR) and its affiliates disclaim responsibility for the absolute accuracy or completeness of the information. The price-to-income ratio in Poland has increased due to more dynamic housing price growth compared to wages over the past two years. In contrast, most CEE countries have experienced a decline in this ratio, suggesting improved housing affordability.
Romania participated in the financial activities of the region by selling RON 618 million worth of T-Bills during an auction. Additionally, the country successfully sold RON 500 million of 2028 government papers, yielding 7.7%. Meanwhile, Czechia reported an inflation rate below market expectations in December, providing a glimpse of economic stability.
In financial markets, Pound Sterling gained ground as market sentiment improved and the US Dollar experienced a broad retreat. EUR/USD continued its recovery trajectory towards 1.0300 during Tuesday's European trading hours. Traders are keenly awaiting US PPI inflation data and commentary from Federal Reserve officials to gauge further market movements.
Technical outlooks suggest potential rallies ahead, particularly for XMR, as its MACD indicator shows a bullish divergence, hinting at double-digit gains. If this aligns with the economic outlook for 2025, Zamrazilova, a central banker, suggests that rate cuts might resume early in the year.