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EURCZK Approaching 100DMA Resistance

CZECHIA
  • Economic data to watch this morning will be Q2 GDP print coming out on July 29, expected to fall by 0.4% QoQ (vs. 0.9% in Q1.
  • This week, we saw that while Vice Governor Zamrazilova could consider ‘all options’ for the next meeting depending on GDP/wage data, Jan Frait said that he will be deciding between rate stability and small hike for the next meeting on August 4.
  • All 7 CNB policymakers will be present at the August 4 meeting.
  • EURCZK has been retracing higher in the past two weeks, gradually approaching its 100DMA at 24.6370.
    • A break above that level would open the door for a move up to 24.7980.
    • On the downside, support to watch stands at 24.50.

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