Koruna On Back Foot Vs EUR But Outperforms CE3 Peers

EUR/CZK touched its 50-DMA this morning but has moved away from there and last changes hands +0.009 at 25.159. The focus this week is on Wednesday's monetary policy decision from the CNB (our preview is forthcoming), as PPI data released this morning caused little stir.

• The rate's uptick in the European morning coincided with similar moves in EUR/PLN and EUR/HUF as the CE3 space shows some weakness at the start to the week. The subsequent pullback outpaced that of EUR/PLN, with EUR/HUF staying afloat, which puts the koruna ahead of its CE3 peers at typing.
• Familiar technical levels remain in play, with bears looking for a breach of 25.000 before setting their sights on Jan 2 high of 24.867. Bulls keep an eye on Feb 15 high of 25.519.
• Czechia's industrial factory-gate prices fell 0.9% Y/Y and rose 0.5% M/M in February, with Komercni banka noting that domestic demand remains weak, with energy input prices boosting February outturns.
• CZGB yields are a tad higher across the curve, while the PX Index operates 0.5% above neutral levels.