Koruna Edges Higher, Unemployment Rate Slips

EUR/CZK has faltered and last deals -0.030 at CZK23.613. Form a technical point of view, bears look for a dip through Jun 6 low of CZK23.510 before setting their sights on May 9 low of CZK23.340. On the flip side, bulls see May 19/Mar 28 highs of CZK23.797/23.820 as their initial target.

• Komercni banka said that "based on the preliminary data, in our opinion, the central bank did not intervene [in FX markets] in May." Official data released yesterday showed that the CNB conducted no interventions in April. Komercni banka think that the CZK's appreciation trend has been temporarily exhausted and EUR/CZK could recover to CZK23.8 over a one-year horizon.
• Coalition leaders believe that their pension reforms can pass in first reading, albeit the opposition announced that it will use parliamentary obstruction to slow down the process.
• Czechia's unemployment rate slipped to 3.5% in May, in line with expectations. This comes on the back of weak activity data released earlier this week.