Koruna Fails To Draw Inspiration From CNB Comments

The latest rounds of CNB speak have failed to offer much in the way of fresh insights, thus having little impact on the Czech Koruna. EUR/CZK operates -0.006 at CZK24.342, with bears looking for further losses towards Nov 8 low of CZK24.244. Conversely, a rebound above last Friday's high of CZK24.426 would bring the 50-DMA at CZK24.477 into view.

• CNB Governor Michl reiterated that a stronger exchange rate should become a priority for both the government and the central bank. He noted that interest-rate stability is a correct approach for now, while the Bank Board will use the December 21 meeting whether to review signals on inflation, which appears to be easing. Speaking in an online debate, his colleague Dedek noted that inflation pressures are peaking and the central bank should not raise interest rates further.
• The PX index trades marginally lower this morning as concerns surrounding China's COVID-19 situation keep a lid on risk assets.