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CZECHIA: ING See EUR/CZK Approaching Peak

CZECHIA
  • ING wrote that EUR/CZK "is close to its peak, carefully following the falling rate differential after the larger-than-expected Czech National Bank rate cut last week," but "it is probably too early to turn bullish [on the koruna] here." This comes as the RSI is flirting with overbought territory (i.e. the 70 threshold), while the pair's 50-DMA hovers just above the 200-DMA.
  • The CNB's latest Financial Market Inflation Expectations report showed that "there has been no change in the expected path of inflation this year amid slightly lower expected economic activity." Survey responses were collected before last week's rate decision and confirmed that most analysts were expecting a 25bp cut.
  • The cabinet will today discuss proposed amendments to labour-protection laws, while the parliamentary budget committee will discuss issues including the digitalisation of financial markets and the National Development Bank.

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