CZK Outperforms PLN & HUF Amid Gains For Local Equity Index

The Czech koruna remains weaker against the outperforming USD despite erasing losses versus the euro. USD/CZK last deals at CZK23.80, up 22 pips on the day, as the greenback remains a clear outperformer. The pair has returned above its 200-DMA after showing below that moving average in the recent days. A break above the 100-DMA/Nov 10 high at CZK24.48/24.53 would aid bullish sentiment. Bears eye Nov 15 low of CZK23.20 for support.

• EUR/CZK last at CZK24.36. Topside focus is on Nov 18 high of CZK24.41, initial support is at Nov 8 low of CZK24.24.
• The PX index has inched higher, advancing for the second consecutive day. This contrasts with losses in stock indices across regional peers, with Poland's WIG20 & Hungary's BUX both struggling to recoup early losses.
• Radio Prague International reported that investment firm Cyrrus expects the decline in Czech real wages this year to be notably steeper than in other Visegrad Group economies. Real wages may drop 8.3% (vs. contractions of 2.3% in the EU, 2.1% in Poland, 1.1% in Slovakia and 0.3% in Hungary) and keep falling next year.
• Otherwise, local headline flow has been light on the news front, with the data docket empty until Thursday's second-tier business/consumer sentiment data.
• The Finance Ministry will publish its debt issuance calendar for December at 2pm.