MNI China Daily Summary: Wednesday, February 19

MNI BRIEF: China Jan Utilised FDI Lower Than Last Year

MNI BRIEF: China Unveils Plan To Attract Foreign Investors

MNI BRIEF: China To Ensure Credit Supply For Private Companies

MNI BRIEF: China Bond Connect Holdings Down In January

MNI: China Tier-one Housing Markets Likely To Stabilise

MNI: US REDBOOK: FEB STORE SALES +5.8% V YR AGO MO

MNI: US JAN HOUSING STARTS 1.366M; PERMITS 1.483M

EZ/UK Bond Supply Calendar: IT Piu; SP, FR Due Thursday

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

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CZK: Koruna Firms Alongside CE3 Peers, Hits New Session High

CZK
EM BulletCzech RepublicBulletEmerging Market NewsCentral and Eastern EuropeCzechia

CZK is trading at a new session high following the CNB press conference, though given both HUF and PLN have also reached new daily highs in recent trade, it appears that CE3 FX is moving primarily in tandem with the slight fade in the greenback. For EURCZK, we flag the 25.00 handle as the next notable support level.

  • While the unanimous vote for a cut could be interpreted as dovish given expectations of a more hawkish split following this morning's stronger-than-expected CPI data, Governor Ales Michl reiterated that Czech central bankers will be very careful about further monetary easing after they delivered what he described as a “hawkish” cut.
  • Michl said rates will probably remain above the trajectory implied in the central bank’s fresh baseline forecast and that he’d prefer if long-term rates didn’t decline much further. The Governor pointed to wage growth and budget deficits as inflationary risks, while weak economic performance in Germany poses a downside risk to inflation.
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CZK is trading at a new session high following the CNB press conference, though given both HUF and PLN have also reached new daily highs in recent trade, it appears that CE3 FX is moving primarily in tandem with the slight fade in the greenback. For EURCZK, we flag the 25.00 handle as the next notable support level.

  • While the unanimous vote for a cut could be interpreted as dovish given expectations of a more hawkish split following this morning's stronger-than-expected CPI data, Governor Ales Michl reiterated that Czech central bankers will be very careful about further monetary easing after they delivered what he described as a “hawkish” cut.
  • Michl said rates will probably remain above the trajectory implied in the central bank’s fresh baseline forecast and that he’d prefer if long-term rates didn’t decline much further. The Governor pointed to wage growth and budget deficits as inflationary risks, while weak economic performance in Germany poses a downside risk to inflation.