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Koruna Lags Regional Peers, CNB Minutes In Focus

CZK

The koruna weakened anew as the CNB released the minutes of its most recent monetary policy meeting, which saw a 50bp rate cut and one dissenter (Frait) vote for a 75bp reduction. CNB officials (Michl & Zamraziilova) have been trying to contain the dovish interpretation of the decision by flagging the intention to proceed cautiously, which found its expression in the minutes as well. The document also suggested that the movements in the koruna exchange rate may affect interest-rate trajectory.

  • EUR/CZK trades +0.068 at 25.414 and the focus falls on yesterday's high of 25.519, followed by Mar 2, 2022 high of 25.936. Bears see Jan 2 high of 24.867 for initial support.
  • The PX Index is up 0.7% this morning, hitting new cyclical highs at 1,493 as resistance from Feb 10 high of 1,490 gave way, with most major equity indices in the green.

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