Koruna Loses Ground Despite Expectation-Beating Data

EUR/CZK changes hands +0.054 at 24.354, with bulls looking for a move towards Oct 26, 2023/Jul 7, 2022 highs of 24.747/24.979, while bears keep an eye on Nov 29 low of 24.203. CZGB yield curve has twist flattened to a degree, while the PX Index has shed 0.5%, moving away from cyclical highs.

• President Petr Pavel said that top state officials agreed on fundamental issues related to foreign policy during their quarterly meeting today. Pavel said that from a longer-term perspective, Czechia should have an ambassador in Moscow. The current envoy Vitezslav Pivonka has been in Prague for several months amid an ongoing discussion on whether to nominate his successor.
• Czechia's trade surplus was wider than expected in October, while industrial output growth outpaced consensus forecast. Komercni banka pointed to the role of recovery of the local automotive industry amid an alleviation of supply chain disruptions.
• The CNB sold an equivalent of $301.5mn on FX markets under its programme of sales of proceedings from foreign-exchange reserves, which was resumed in August. This comes after the sales of $293.6mn and $114.2mn in September and August respectively.