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Economic Activity To Continue To Decelerate As Government Tightens Restrictions

CZECHIA
  • The outgoing government is scheduled to discuss the pandemic situation and potential tightening of rules for people who aren't vaccinated against Covid-19 (BBG).
  • This morning, economic data showed that the current account deficit came in 'higher' than expected at -10bn CZK (vs. 22.7bn CZK), up from -37.80bn the previous month.
  • Next economic data to watch will be PPI inflation, coming out on November 16 and expected to accelerate to 10.3% YoY.
  • USDCZK ticks higher this morning, currently trading above the 22 level; next resistance to watch on the topside stands at 22.24. On the downside, first support stands at 21.85 (50DMA), followed by 21.74 (100DMA).
  • Czech 10Y yield has been retracing slightly higher last week, currently trading at 2.65%; next key resistance to watch on the topside stands at 2.74%. On the downside, first support to watch stands at 2.60%

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