Koruna Appreciates, Pension Reforms Draw Attention

EUR/CZK has faltered even as the greenback continues to trade on the front foot. The rate last deals -0.051 at 24.053, with bears looking for a test of round figure/Aug 21 low of 24.000/23.977.

• President Petr Pavel and Prime Minister Petr Fiala will meet tonight and are expected to discuss the government's pension reforms intended to reduce fiscal deficits. Seznam Zpravy reports that the President could refuse to sign the legislation, as he considers it too soft and thinks that it has been implemented too quickly.
• The CNB yesterday published its August Financial Market Inflation Expectations survey, which showed that "the analysts expect inflation to slow further," while "none ofthe respondents expects the CNB to change its key interest rates at the next monetary policy meeting". Furthermore, the "analysts believe [the koruna] came close to its fundamental equilibrium level, where it may remain over the next 12 months".