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Koruna Benefits From Kubelkova's Comments

CZK

EUR/CZK remains under pressure and last changes hands -0.065 at 24.388, testing a layer of support provided by the 23.6% retracement of its YtD range/Nov 3 low at 24.384/24.365, followed by the 24.3 area. Conversely, bulls need a rebound above Oct 26, 2023/Jul 7, 2022 highs of 24.747/24.797 to regain the upper hand.

  • Yesterday's comments from CNB's Kubelkova may have lent some support to the koruna, with the policymaker flagging the traditional January repricing of goods and services as a source of "big uncertainty" for the central bank.
  • A FinMin/CNB report suggested that Czechia's economy will be ready for the adoption of the euro in 2024 but Prime Minister Fiala's ODS party is opposed to taking any steps towards entering the eurozone.

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