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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CZECHIA
- This morning, economic data showed that CPI inflation accelerated to 11.1% in February, (vs. 10.4% exp.), up from 9.9% the previous month.
- Yesterday, CNB Governor Rusnok said on public radio that he cannot predict next rate decision; any future hike would be consider 'cosmetic fine-tuning'.
- Rusnok added that the CNB is ready to intervene to support CZK as long as needed.
- As we previously mentioned, hiking too aggressively could lead to a significant deceleration in the economic activity in the next 6 months.
- The chart below shows that the surge in ST rates has been pricing in a significant slowdown in Czech economic activity.
- The ‘slight improvements’ in the Russia/Ukraine conflict this week led to a sharp retracement in EURCZK; the pair broke back below the 25.50 level and is currently trading below its 200DMA at 25.24.
- Next support to watch on the downside stands at 25 (100DMA).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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