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Koruna Loses Ground, CNB Speak Under Scrutiny

CZK

EUR/CZK trades with mild bullish bias as participants reflect on some final comments from CNB members ahead of the media blackout preceding next week's rate decision. The Czech central bank has been moving closer to starting its easing cycle, but it remains uncertain whether it will pull the trigger already on December 21.

  • The rate last deals +0.028 at 24.462, unwinding some of yesterday's post-FOMC losses. A clean break above the 61.8% retracement of the Oct 26 - Nov 29 sell-off at 24.539 would open up Oct 26, 2023/Jul 7, 2022 highs of 24.747.24.979. Bears look for a pullback towards Nov 29 low of 24.203.
  • The Senate will decide on whether the approve President Pavel's candidates for Constitutional Court justices. The nominations to the top court had previously caused some controversy, while one of the two candidates under review today failed to win the endorsement of one of two relevant Senate committees.

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