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EURCZK Gradually Approaching Key Support At 24.77

CEE FX
  • We saw recently that EURCZK below its key support at 25 as aggressive CNB policy keeps strengthening the koruna.
  • 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%).
  • Next key level to watch on the downside stands at 24.77 (Feb 2020 low).

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