MNI: PBOC Net Injects CNY46 Bln Via OMO Mon; Rates Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.1201 Mon; -1.20% Y/Y

CHINA PBOC CONDUCTS CNY50 BILLION VIA 7-DAY REVERSE REPOS MON

CHINA SETS YUAN CENTRAL PARITY AT 7.1201 MON VS 7.1196

MNI BRIEF: China Hopes EU To Ease Frictions Via Negotiations

MNI: PBOC Net Injects CNY8 Bln Via OMO Fri; Rates Unchanged

IFO surprises to the downside

MNI: GERMANY JUN IFO BUSINESS CLIMATE INDEX 88.6

Consensus looks for higher IFO; flash PMI points to risks lower

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EURCZK Breaks Below 25 Support

CZECHIA
  • This morning, Czech Foreign Minister Bek said that Czech Republic is seeking stronger ties with EU members and avoid political uncertainty as its CEE neighbors.
  • We have seen that the on-going dispute between Hungary/ Poland and the EU has been weighing on the domestic currencies in recent month
  • Last week, the CNB decided to raise its benchmark rate more than expected to 3.75% (pre-GFC highs) to continue its fight against inflation.
  • With inflation expected to remain elevated longer than previously estimated, the terminal rate could be reviewed to the upside (above 4%).
  • However, the uncertainty over the economic outlook combined with the sharp increase in ST rates amid aggressive CNB tightening could weigh on the economic activity in the medium term.
  • One positive thing about the aggressive hike is that it will continue to support CZK against major crosses (i.e. EUR) and therefore help anchor inflation expectations.
  • EURCZK keeps trending following the CNB decision and broke below the 25 level this week; next key support to watch on the downside stands at 24.77 (Feb 2020 low).
  • CZK is the 'less risky' currency among the CEE region, therefore CZK crosses (HUF, PLN) could continue to reach new all time highs.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.