Koruna Loses Ground Despite Continued Steam Of Hawkish CNB Speak

EUR/CZK has crept higher for the sixth consecutive day, piercing its 100-DMA (CZK23.690) in the process. It last deals +0.082 at CZK23.692, with bulls looking for a clean break above May 1 high of CZK23.705. Above there opens Mar 28 high of CZK23.820. Bears see May 9 low of CZK23.340 as their initial target.

• Yesterday's comments from CNB Governor Ales Michl (rates to stay higher for longer, market bets on Q3 rate cuts are premature), with the recent hawkish shift in the central bank's rhetoric now seemingly priced in. The government's fiscal consolidation package and faster than expected domestic disinflation might also casting doubt on the CNB's hawkish language. The Governor yesterday lauded efforts to rein in public spending, adding that the central bank will have an analysis of the government's austerity measures within weeks.
• The Chamber of Deputies convenes for a regular session today at 13:00BST/14:00CEST. It is set to proceed according to the pre-determined schedule but the opposition SPD party intends to propose adding a debate on the government's fiscal consolidation package to the agenda and said it is preparing for filibuster.