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EUR/CZK Creeps to Weekly High on Prochazka Comments

CZK
EUR/CZK inches to the best levels of the session and the cross shows above the 50-dma at 24.503 a few minutes after comments from CNB's Prochazka, who discussed the possibility of a December rate hike (meeting is on Dec 21st):
  • Early data on how the Christmas season was going for retailers would be important for the Dec. 21 meeting, he said, adding that there were no signs of a buying frenzy, with household spending remaining suppressed.
  • There will be "big debate" on Dec. 21 as to whether to start [rate cuts] or not.
  • The size of January repricing is among the main risks mentioned by central bankers as a factor for possibly pushing the first rate cut beyond the New Year.
  • "If we are convinced (by data), then first slow, small lowering (in December) may also be a signal of self-confidence."

The firmer greenback has been weighing on the EM basket since the US data, and the break of 24.475, the 50% Fibonacci retracement of the Oct 26 - Nov 29 sell-off aforementioned level could expose the Oct 26, 2023/Jul 7, 2022 highs of 24.747/24.797 further out.

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