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Koruna Loses Shine, Industrial PPI Falls On M/M Basis

CZK

EUR/CZK trades +0.007 at CZK24.264 after three consecutive days of losses. A firmer rebound above the 50-DMA/Nov 25 high at CZK24.400/24.426 is needed to give bulls some reprieve. Conversely, a move through Nov 8 low of CZK24.244 would confirm that bears are in control.

  • Generally weak equity sentiment is affecting the PX index, which has shed ~0.6% thus far, approaching recent multi-week lows.
  • Czechia's industrial PPI unexpectedly fell 1.0% M/M in November after a 0.6% increase in October. The annual change in industrial PPI was +21.3% Y/Y versus +23.0% expected.
  • Looking ahead, the CNB will announce its final interest-rate decision of 2022 next Wednesday. Policymakers are expected to keep the Repurchase Rate unchanged at 7.00%.

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