Koruna Advances, Q1 GDP Data Tops Expectations But S&P Global M'fing PMI Disappoints

EUR/CZK has edged lower and last deals -0.047 at CZK23.569, with bears looking for a clean break below the 50-DMA (tested as we type), which would bring Apr 14 low of CZK23.207 into play. Conversely, a key topside target is provided by Mar 17 high of CZK24.137.

• Preliminary data showed that Czechia's GDP rose by 0.1% Q/Q in the three months through end-March, beating expectations of a 0.1% contraction. Annual growth came in at -0.2% versus -0.5% expected. The CZSO commented that both figures "were positively influenced mainly by an increasing external demand," while "a negative influence came from further decreasing final consumption expenditure of households."
• S&P Global Manufacturing PMI data subsequently showed that the main index fell to 42.8 in April from 44.3 prior versus 44.5 expected, as "subdued demand following steep inflation and cautious spending among customers led to sharper drops in new orders, output, input buying and stock holdings."
• Czechia's budget balance for April will be released at 13:00BST/14:00CEST. The YrD deficit reached CZK166.2bn in March.
• The CNB will announce its next monetary policy decision and release an updated set of macroeconomic projections tomorrow.