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Industrial Production Rose 32.3% YoY in May

CZECHIA
  • This morning, economic data showed that Czech recorded a national trade surplus of 6.3bn CZK in May, and that industrial output rose 32.3% Y/Y in May.
  • Next important economic data to watch will be retail sales on July 8 and then Unemployment rate on July 9.
  • Next CNB meeting will take place on August 5, and policymaker are very likely to raise the benchmark rate by another 25bps to 0.75%.
  • According to the STIR market, the FRA 6Mx9M are trading 71bps above the Pribor 3M, which implies that traders are still expecting up to 3 hikes for the rest of the year.
  • USDCZK ticks lower this morning, currently trading slightly below its 200DMA at 21.76; next resistance to watch on the topside stands at 22. On the downside, first support to watch below 21.47 (100DMA) stands at 21.31.
  • Czech 10Y yield is flat this morning, currently trading slightly above its 50DMA (1.71%) and gradually approaching its next resistance at 1.76% (100DMA). On the downside, key support to watch stands at 1.60%.

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