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Koruna Advances, Parliament Debates Austerity Measures

CZK

EUR/CZK operates -0.066 at 24.385, with the koruna sitting close to the top of the EMEA pile (lagging only the South African rand). From a technical perspective, bears look for a dip through the 23.6% retracement of the YtD upleg at 24.316. The initial layer of resistance is provided by Sep 12, 2023/Sep 29, 2022 highs of 24.659/24.700.

  • The CNB will announce its monetary policy decision on September 27, with the market expecting an extension of the current pause in interest-rate action. However, policymakers will likely discuss strategies for future monetary easing.
  • The Chamber of Deputies started to debate the government's fiscal consolidation package in the third and final reading.

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