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Koruna Moves Away From Cycle Highs, CNB Decision On Tap This Week

CZK

EUR/CZK touched a new cyclical low of CZK24.212 before reversing losses and returning into positive territory. The pair last changes hands +0.008 at CZK24.235, with bulls looking for gains towards Nov 25 high of CZK24.426. On the flip side, the next key layer of support is provided by Feb 3 YtD low of CZK24.094.

  • The PX index has added 0.25% this morning, paring some of the previous trading day's losses. Elsewhere in the CEE equity space, Poland's WIG20 has edged higher, while Hungary's BUX has slipped.
  • Milos Zeman backed Andrej Babis to replace him as Czech President next year. Poll aggregators suggest that Babis might win in the first round but would be defeated by either of his two closest rivals in the runoff.
  • The domestic economic calendar is almost empty this week, apart from the CNB rate decision due Wednesday. The Bank Board is expected to keep the Repurchase Rate unchanged at 7%.

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