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Koruna On Back Foot But CZGBs Rally, Fitch Rating Update Due Today


EUR/CZK climbed to CZK23.523 before easing off highs and last changes hands +0.049 at CZK23.471, posting gains for the second consecutive day. Familiar technical contours remain in play, with the RSI returning from oversold territory as the spot rate bounced off multi-year lows printed earlier this week.

  • The session has seen sharp appreciation in CZGBs, which outperformed their CE3 peers, with the 7-10 year sector leading gains. The PX index has added ~0.5% but its recent cyclical high has remained intact.
  • Czech lawmakers have now spent more than 70 hours debating the government's pension bill, which is a key component of a plan to reduce public spending. Opposition lawmakers continued to filibuster the bill, while outgoing President Milos Zeman spoke against the reform. Prime Minister Petr Fiala asked trade unionist to "be realistic" after the country's largest union called a protest against the reform for March 29.
  • As the government is trying to push legislation to stabilise public finances, Fitch is set to provide an update on Czechia's sovereign credit rating later today.

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