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EUR/CZK Re-Tests Key Support

CZK

EUR/CZK rejected support from Nov 8 cyclical low of CZK24.244 and now trades -0.012 at CZK24.245 amid little in the way of notable domestic headline flow. A break below that level would reinforce the broader bearish theme, bringing Feb 3 YtD low of CZK24.094 into view.

  • USD/CZK trades +0.026 at CZK22.850, extending its move away from cyclical lows printed at CZK22.603 yesterday. Bulls look for a return above the CZK23 mark, which would open up Nov 30 high of CZK23.660 and Nov 21 high of CZK23.816.
  • Seznam Zpravy ran a piece noting that the report on factory-gate inflation revealed that agricultural producer prices rose the most, rising 29.9% Y/Y last month. The news portal cited a local analyst noting that "it cannot be expected that food prices in Czech supermarkets will decrease significantly in the coming months."

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