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Koruna Holds Steady After Zamrazilova's Comments

CZK

EUR/CZK trades +0.004 at CZK23.666 with bulls looking for a rally above May 19/Mar 28 highs of CZK23.797/23.820. On the flip side, bears see Jun 6 low of CZK23.510 as their initial target.

  • CNB Deputy Governor Eva Zamrazilova told Seznam Zpravy that headline inflation could ease below +10% Y/Y in June and reach +3% at the beginning of next year. The official reiterated that she deems keeping interest rates stable an appropriate course of action in the current circumstances.
  • Taiwanese Foreign Minister Joseph Wu will visit Czechia next week and may attend one event with President Petr Pavel, which could exacerbate tensions with mainland China.
  • CZGBs have turned bid and remain firmer across the board. Czechia's FRA contracts fell across the curve, before trimming initial losses.

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