CZK: Koruna Struggles To Push Boundaries Of July Range

EUR/CZK continues to trade sideways after hitting cyclical highs at the start of the month. When this is being typed, the pair changes hands +0.016 at 25.201, with bulls seeking a move through Jul 2 high of 25.215. This would allow them to regain the initiative and target next resistance from Apr 10 high of 25.448. Meanwhile, the 200-DMA (24.864) provides the initial layer of support.

• Data from the CZSO suggested that the unemployment rate remained unchanged at 3.6% in June, in line with expectations. Labour and Social Affairs Minister Marian Jurecka said that "it still remains very low, even the lowest in the entire EU." In the statement accompanying the CNB's most recent monetary policy decision, the Board said that "the labour market tightness is easing slowly, but unemployment remains low."
• The central bank reported that its foreign reserve fell to $146.5bn in June from $148.0bn prior. New data also showed that the CNB's FX reserves sales slowed to EUR280mn in May from EUR296mn in April. The central bank launched a programme of sales of part of the proceeds on its reserves last year, noting that it should not have much impact on the exchange rate.
• CZGB yields are a tad lower across the curve; the PX Index operates close to neutral levels.