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EUR/CZK Through Overnight Highs After CNB Hawk Flags Room For Rate Cuts In 1H24

CZK

EUR/CZK has turned bid after notorious hawk Tomas Holub said that the Bank Board could start cutting interest rates in 1H2024. The rate last sits +0.032 at CZK23.694, while the koruna is the second-worst performer in the EMEA space.

  • CZGB curve runs steeper, with yields last seen 5.6-10.3bp lower at typing, albeit the latest downtick occurred before Holub's comments crossed the wires. The Czech FRA curve also moved lower prior to the release of the HN interview, extending its recent downshift.

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