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CZK: Koruna Advances Amid CE3 Outperformance

CZK

EUR/CZK eases off recent cyclical highs after the RSI entered overbought territory (70+) and remains there. The pair's 50-DMA is still running below the 200-DMA, albeit both are now heading upwards. The pair last operates -0.016 at 25.358, with bears looking for a dip towards the 100-DMA (25.073), followed by the 25.0 figure. Bulls see Apr 10 & Feb 15 highs, located at 25.448 & 25.519 respectively, as their initial targets.

  • CNB's Jan Prochazka suggested that another 50bp rate cut in August is "highly unlikely," with the Bank Board set to decide between a 25bp cut and a hold. The official said that the central bank is entering "fine tuning" mode, whereby it will be calibrating monetary policy more cautiously after bringing interest rates to less - but still - restrictive levels.
  • Otherwise, headline flow out of Czechia has been relatively muted, with the koruna exposed to the fallout from yesterday's US CPI data and other regional/global developments. CE3 currencies are the best performers in the EMEA space at typing, but the koruna occupies the third place, lagging both HUF and PLN.

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