Koruna Falters In Sync With Most EMEA Peers

EUR/CZK climbs for the fourth consecutive day and last changes hands +0.069 at CZK23.715. For bulls, a break above the 50-DMA (CZK23.775) would represent an important development, opening up scope for further gains. Bears look for a pullback towards recent cyclical lows printed at CZK23.343.

• CZGB yields last seen 7.6-10.7bp lower across a flattened curve. The PX index has tumbled ~2.2%, piercing its 50-DMA in the process.
• CNB Deputy Governor Eva Zamrazilova told Bankovnicvi magazine that local interest rates will need to stay above the neutral level for longer than expected earlier to prevent a rebound in price pressures.
• Elsewhere, CNB Governor Ales Michl received top-level security clearance after his predecessor Jiri Rusnok and President Petr Pavel cast doubt on his ability to fulfil his mandate without the background check.