Free Trial

/CZK: Psychological Figure Gives Way As Pair Sinks To All-Time Lows


Following a bearish 50-/100-DMA crossover last week, spot PLN/CZK has sold off past support from the CZK5.0160/5.0097 area, which cushioned losses in October and July. A clean breach of that zone opened the scope for the pair to lodge new all-time lows today at CZK4.9886, with the psychological CZK5.0000 figure now in rearview mirror.

  • PLN/CZK last deals at CZK4.9959, 318 pips below the prior close. It has faltered past its lower 2.0% Bollinger band, while the RSI has moved into oversold territory, suggesting that the current sell-off might be overextended.
  • POLGB yields have surged across the curve as local-currency bonds underperform CE3 peers. Benchmark 10-year POLGB/CZGB yield differential has expanded to fresh two-week wides as a result.
  • Czech policymakers left interest rates unchanged last week and their Polish colleagues are expected to follow suit tomorrow, which turns focus to any divergence in the accompanying language.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.