Koruna Appreciation Loses Steam After EUR/CZK Slid Through 50-DMA

EUR/CZK edges higher after a four-day losing streak, which took it through support from the ascending 50-DMA. The rate trades +0.019 at 25.216 and bulls continue to look for a move through Feb 15 high of 25.519, which would confirm the resumption of an uptrend after a spell of consolidation. Conversely, bears seek losses past the 25.000 figure and Jan 2 high of 24.867, which would suggest potential for a deeper sell-off. For now, EUR/CZK continues to operate comfortably above the levels implied by the CNB's Winter Forecast (24.70 in 1Q24 and 24.65 in 2Q24), while the koruna lags both of its CE3 peers today.

• EUR/CZK has been moving out of sync with EUR/PLN over the past few days, with PLN/CZK moving away from its cyclical highs (5.9686) and unwinding overbought conditions (as indicated by the RSI) in the process. Price action found support in the 100-DMA (5.7736) and the pair has ticked away from there this morning, adding 332 so far to last change hands at 5.8050.
• Czechia's industrial PPI was unchanged in Y/Y terms in March, missing expectations of a 0.3% uptick. On the M/M basis, prices unexpectedly fell 0.1% instead of rising 0.3%.
• CZGB yields are broadly lower across the curve, while the PX Index is little changed on the day.