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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
- CNB is expected to raise its benchmark rate by 0.25% to 0.50% at today's policy meeting following policymakers recent 'hawkish' comments in the past two weeks.
- While headline inflation has broken above central banks' upper tolerance band in Hungary and Poland, CPI is now within the 1%/3% CNB range after ticking down to 2.9% in May (see chart).
- Selling pressure on CZK has eased this week ahead of the policy meeting. USDCZK continues to retrace lower after finding a local high at 21.60 on Monday; next support to watch on the downside stands at 21.15 (50D SMA), followed by 21. On the topside, key resistance to watch above 21.60 stands at 21.83 (200D SMA).
- Little weakness in the USD today has generated some support for Czech equities, with PX Index finding support slightly above the 1,150 level; important resistance to watch on the topside stands at 1,184, followed by psychological 1,200 level.
- Czech 10 yield has been ticking higher in the past week after failing to break below its 1.60% support; resistance on the topside stands at 1.74% (50D / 100D SMA). On the downside, first support below 1.60% stands at 1.52%.
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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