Corrective Move Runs Its Course, Koruna Weakens Again

EUR/CZK resumes gains after a corrective pullback earlier this week. The rate last sits +0.038 at 24.081 and topside technical focus falls on Jul 24 high of 24.187. A clearance of that level would open up Dec 30, 2022 high/23.6% retracement of the 2020 - 2023 sell-off at 24.336/24.341. Bears keep an eye on the 24.00 figure, followed by the 23.745 support area.

• The PX Index has added ~0.6% today, extending gains after crossing above its 100-DMA yesterday. The RSI has now moved above 70, entering overbought territory, which suggests potential for an imminent correction. Shares in majority state-owned CEZ utility continue to strengthen amid talk of a potential debate on ending the windfall tax next year.
• The CNB is in the blackout period. Under its regulations, "exceptions from the media quarantine rule may be made if the Bank Board judges that the benefits of doing so outweigh the benefits of media quarantine, but barring big market moves we shouldn't hear from the central bank until next Thursday's rate decision.
• The next data release of note is advance Q2 GDP reading, due Monday. Economists polled by Bloomberg expect a 0.5% Y/Y contraction.