CZK: Koruna Garners Some Strength But Key Levels Stay Intact

EUR/CZK holds a familiar range, consolidating recent gains just above the descending 50-DMA (24.880), while struggling to extend them past the psychologically significant 25.0 figure. The rate last deals -0.028 at 24.902, with bears looking for a return below the 50-DMA and the 200-DMA (24.827) before a move towards Jun 7 low of 24.537. Conversely, the 100-DMA provides a layer of resistance at 25.092, should the 25.0 figure give way. Note that these key DMAs have been useful in mapping price action in the recent months.

• There has been little in the way of market reaction to the publication of the minutes from the CNB's financial stability meeting held earlier this month. The minutes shed more light on the discussion within the Bank Board, uncovering differences in opinions on macroprudential parameters, which may have been masked by the headline notifying about a unanimous vote for a 50bp cut to the CCyB rate telegraphed after the meeting. See the full document here.
• CZGBs trade on the back foot, with 7s underperfoming. The PX Index has added 0.3%, holding within a well-defined range so far.