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Koruna Clings Onto Neutral Levels

CZK

EUR/CZK trades flat at 23.680 amid the absence of major local catalysts. From a technical standpoint, a rally above Mar 17 high of 24.137 would suggests that bulls are taking control. Bears eye initial support from Jun 6 low of 23.510.

  • CEZ shares (-11.2%) slumped this morning, as the energy utility went ex-dividend after approving a record-breaking CZK145/share payout. This resulted in strong weakness in the PX Index, which has now pierced its 200-DMA for the first time since early January.
  • The Cabinet approved its fiscal consolidation package without any changes, but Environment Minister Petr Hladik and the STAN party suggested that some technical adjustments could still be implemented in the Chamber of Deputies.

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