Koruna Creeps Higher, Industrial PPI Inflation Cools
European growth proxies trade on a firmer footing as the BBDXY Index has edged lower. However, the koruna lags its CE3 peers (PLN/CZK +0.2%, CZK/HUF -0.4%). When this is being typed, EUR/CZK trades -0.041 at 24.072. Losses past Aug 14 low of 24015 would expose the 200-DMA, which kicks in at 23.843. Conversely, bulls eye resistance from the 24.3 area, which capped gains earlier this month.
- Czechia's industrial PPI inflation slowed to +1.4% Y/Y in July from +1.9% prior versus +1.5% expected. Komercni banka wrote that the reading was "significantly affected by last year's high comparative base." They note that the data on "price developments in the manufacturing sector point to continued disinflationary tendencies in the Czech economy and portend a further decline in consumer inflation."