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Koruna On Defensive Alongside Regional Peers

CZK

EUR/CZK posted another leg higher this morning, peaking just shy of the 24.4 figure. The confluence of underwhelming domestic data and a surprisingly dovish rate decision in Poland keep sapping strength from the koruna. The pair last deals +0.090 at 24.364, with bulls setting their sights on Nov 25, 2022 high of 24.426.

  • Czechia's ex-auto retail sales fell 1.8% Y/Y in July versus -3.1% expected. However, Komercni banka flag that the Y/Y print was affected by revisions of historical data. They note that consumer demand is recovering "at a very slow pace". This comes after weak wage and industrial output data earlier this week. Ceska sporitelna write that today's data "should not have a significant impact on the CNB," while CSOB suggest that the central bank will probably pay most attention to core inflation, wages and ECB policy going forward.
  • As a reminder, CNB Deputy Governor Eva Zamrazilova will speak at a conference at 13:00BST/14:00CEST.

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