Koruna Finds Poise, CNB Dep Gov Praises Gov't's Austerity Package

EUR/CZK snaps a four-day losing streak and last trades +0.048 at CZK23.659. From a technical perspective, the initial bullish target is provided by May 19/Mar 28 highs of CZK23.797/23.820. On the flip side, bears look for a sell-off towards May 9 low of CZK23.340.

• CNB Deputy Governor Eva Zamrazilova endorsed the current level of interest rates and said that the government's fiscal consolidation package will likely lower the chance of another hike. She spoke with CT24 after PM Fiala visited central bank headquarters to discuss his austerity measures and the inflation situation.
• CZGBs are slightly firmer across the curve as we type. The FRA curve has adjusted lower, unwinding some of its recent shift higher, possibly on the back of the assessment of the ramifications of the government's austerity measures.
• There is a sovereign credit rating review from Moody's scheduled for after hours today. ING wrote that in their view "it is too late for a downgrade and too early for the agency to take into account the recently-unveiled fiscal package and return the outlook to stable" after changing it to negative last August. However, "we may see the first comment from the rating agency on the government's new fiscal plans."