Koruna Garners Strength, Debate On Lex CEZ Adjourned Again

EUR/CZK trades -0.026 at 24.502, with the koruna outperforming its CE3 peers at typing. The pair is struggling to break out of its recent trading range. A move through Nov 3 low of 24.365 would allow bears to set their sights on the key 24.3 support area. Bulls look for a rebound above Oct 26, 2023/Jul 7, 2022 highs of 24.747/24.797.

• Czechia's parliament adjourned the debate on the asset-split bill dubbed "Lex CEZ" because it would make it easier for the government to restructure the energy utility. Unnamed sources told Bloomberg that the ruling coalition will likely water the legislation down to allow minority shareholders to keep more influence over asset splits. This falls in line with the plan signalled already in September, when the initial debate was first adjourned to allow for tweaking the draft bill. As a result, CEZ shares trade 0.8% lower on the day, even as the PX Index operates marginally higher.
• President Petr Pavel agreed to sign the government's fiscal consolidation package, which removes the last hurdle for the legislation to become law.
• CNB Deputy Governor Zamrazilova was optimistic about the prospect of reaching the +2% Y/Y inflation target next year.