Koruna Grinds Lower Versus Euro Amid Lower Czech Bond Yields
EUR/CZK has been creeping higher through the day, likely supported by slightly lower yields on Czech gov't bonds. The highlight of the day was a round of comments from CNB Governor Michl, who played down the potential for imminent interest-rate hikes, while expressing preference for a stronger exchange rate.
- At typing, EUR/CZK trades at CZK24.367, just above neutral levels, after having a look above yesterday's peak. The key near-term bullish target is provided by Nov 18 high/38.2% retracement of the Sep 29 - Nov 8 sell-off at CZK24.414/24.418.
- PLN/CZK has added 44 pips to last trade at CZK5.1811, despite a round of weaker than forecast Polish retail sales data. Bulls keep an eye on Nov 16 high of CZK5.2018. CZK/HUF trades at HUF16.7933 after the forint's slide in reaction to reports on potential for freezing some EU funds earmarked for Hungary.