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Koruna Lags EMEA Peers

CZK

EUR/CZK has extended its move away from multi-year lows printed last week, the pair last deals +0.048 at CZK23.370. It is difficult to pin the Koruna's underperformance relative to its EMEA peers on any specific headline amid little in the way of fresh news/data coming out of the Czech Republic.

  • From a technical standpoint, bulls need to reclaim Mar 28 high of CZK23.820 to gain some momentum. Bears look for a resumption of losses and a move through Apr 14 low of CZK23.207 would expose Jul 21, 2008 low of CZK22.877.
  • CZGB yields are generally slightly higher across the curve, while the PX index is marginally firmer.
  • CNB Dep Gov Frait in his speech today noted that the nervousness in the Czech financial sector caused by the recent banking turmoil abroad was needless. Frait noted that the local banking sector is "healthy, efficient and modern."

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