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Koruna Catches Up with CE3 Peers as EUR Strength Supports CEE FX

CZK
Downward momentum in EURCZK has picked up in the past ~2 hours, helping the koruna catch up to its CE3 peers which have been performing on firmer footing since the start of European trade (PLNCZK: -0.19%; CZKHUF: -0.08%). While there are no obvious domestic drivers, EUR strength has provided a tailwind across CEE FX today, while firmer major equity indices and a slightly softer dollar are indicative of the more favourable market appetite to risk.
  • The pick-up in momentum through Friday’s lows is likely helping the move lower also, with the cross seen piercing the Oct 24 low at 24.561 in the process. Firmer support is marked further out at 24.433 – the 50-day EMA. EURCZK has not traded below that average since June.
  • Looking ahead, Fed and BoJ rate decisions are the highlights across global markets while the CNB rate decision takes focus domestically on Thursday.

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