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Koruna On Front Foot, Presidential Campaign & CNB Speak In Focus


EUR/CZK has eased off and last operates -0.027 at CZK23.885 after printing new cyclical lows at CZK23.876. The next technical stop on the downside is CZK23.700, which limited losses on Oct 30, 2008. Conversely, bulls look for a rebound above the 50-DMA, which kicks in at CZK24.200.

  • CZGB yields are generally softer across the curve, while the PX index is having a look above Jan 12 high as it lodges a new cyclical peak.
  • Opinion polls and betting market pricing continue to indicate that Petr Pavel is the frontrunner in the presidential run-off. The retired army general was forced to call off his campaign plans for today due to health issues, but his rival Andrej Babis may struggle to capitalise on Pavel's indisposition, as media attention has been drawn to his controversial remarks re: NATO commitments from over the weekend.
  • CNB Governor Ales Michl wrote in an op-ed that Koruna strength and elevated interest rates are helping to tame inflation. His Bank Board colleague Karina Kubelkova argued for smoothing out the rate path, noting that further hikes are not needed but borrowing costs may need to stay higher for longer.

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