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Koruna Depreciates, CNB Speak Remains In Focus

CZK

EUR/CZK refreshed cyclical highs at 24.737 before easing off and last changes hands +0.035 at 24.717. On the topside, the focus falls on 24.797, which capped gains on Jul 7, 2022. Bears continue to look for a pullback towards the 24.3 support area.

  • The CNB re-circulated an October 12 interview with Deputy Governor Eva Zamrazilova, who said that inflation will likely ease to the target in 1H2024 but rates may still need to remain elevated for an extended period of time amid expectations of sticky core inflation.
  • CZGB yields are slightly higher across the curve, with FRAs edging higher today.

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