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Koruna Finds Poise Despite Weak Showing From Regional Equities

CZK

EUR/CZK has given away its earlier gains and now changes hands at CZK24.268, barely changed on the day. USD/CZK trades -0.042 at CZK22.667, after refreshing multi-month lows.

  • CZGB yield curve has shifted higher, with bonds last seen up to 7.8bp cheaper. Meanwhile, the PX index has shed ~0.5% so far, with both Poland's WIG20 and Hungary's BUX registering losses today.
  • Looking ahead, the Czech National Bank is expected to keep the Repurchase Rate unchanged at 7.00% next week, as the dovish majority in the Bank Board stands its ground. EUR/CZK one-week implied volatility hovers just above recent multi-year lows.

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