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Koruna Continues To Struggle, Czech FRAs Tick Lower

CZK

EUR/CZK has moved away from its intraday high (CZK23.579), failing to test the 50-DMA on its upswing, and last deals +0.077 at CZK23.509. The Koruna continues to underperform its CE3 peers and only the Israeli Shekel fares worse in the EMEA space.

  • It has been a very quiet day in the Czech Republic, with headline flow providing little of real note, and no fresh data releases coming out of the country.
  • There has been some further dovish repricing in Czechia's FRA curve, with the 9x12 contract falling to its lowest levels in a week.
  • This contrasts with communications from Bank Board members, who in recent weeks have been doubling down on their "higher for longer" message.

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