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Koruna Extends Post-CNB Gains, PLN/CZK Falters


EUR/CZK has lost altitude and last trades -0.080 at CZK23.434, with broader EUR weakness post-ECB monetary policy decision likely facilitating the move, despite the absence of a clear knee-jerk reaction. The pair has moved firmly through yesterday's low (CZK23.472) as bears set their sights on Apr 14 cyclical low of CZK23.207.

  • PLN/CZK resumed losses after a bearish inside day and last deals -135 pips at CZK5.1099, with the former double-bottom pattern tentatively invalidated. Sales towards Apr 11 low of CZK4.9724 would please bears as the RSI has pulled back sharply from overbought territory.
  • Yesterday's upward shift in the Czech FRA curve has been partly unwound as today's session has seen corrective pullbacks, particularly further out the curve.
  • Our CNB review including a summary of sell-side views and all necessary links can be accessed here.
  • On the data front, the focus turns to Czechia's retail sales, due tomorrow.

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