Free Trial
AUSTRALIA

CBA: Card Spending Data Suggests Volume Rise Slowing

AUSSIE 3-YEAR TECHS

(Z2) Breaches Support

ASIA

Coming up in the Asia-Pac session on Tuesday:

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Commerzbank Sees 25bps Hike

CZECHIA
  • As Czech core inflation has accelerated further, the Czech real interest rate is now the most negative in CE3, and this is taking a toll on the koruna exchange rate.
  • This was not manifested clearly because CNB was making sizeable FX interventions to defend the currency.
  • Nevertheless, as Tomas Holub correctly clarified in his interview, continued intervention (as a substitute for rate hikes) would begin to attract the attention of speculators and could end up in a messy situation.
  • In recent days, the koruna has begun to drift weaker and underperform CE3 peers.
  • Hence, it makes sense to hold a base-case where CNB will use its remaining ammunition sooner rather than later, raising the key rate today (25bps hike).
119 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • As Czech core inflation has accelerated further, the Czech real interest rate is now the most negative in CE3, and this is taking a toll on the koruna exchange rate.
  • This was not manifested clearly because CNB was making sizeable FX interventions to defend the currency.
  • Nevertheless, as Tomas Holub correctly clarified in his interview, continued intervention (as a substitute for rate hikes) would begin to attract the attention of speculators and could end up in a messy situation.
  • In recent days, the koruna has begun to drift weaker and underperform CE3 peers.
  • Hence, it makes sense to hold a base-case where CNB will use its remaining ammunition sooner rather than later, raising the key rate today (25bps hike).