Koruna Oscillates, CNB Rate Decision Eyed

EUR/CZK changes hands +0.014 at CZK23.759 at typing, with participants awaiting tomorrow's CNB announcemnet. From a technical perspective, bulls look for gains past Mar 17 high of CZK24.137. Conversely, bears see Jun 6 low of CZK23.510 as their initial target.

• The CNB will announce their rate decision tomorrow. The central bank is widely expected to keep interest rates, likely moving away from the brink of resuming the tightening cycle. Still, the Bank Board may deploy hawkish messaging to push back against overdone rate-cut wagers, which have been piling since mid-May. The local FRA curve has edged higher this morning, possibly in anticipation of the CNB's reaction.
• The PX Index has shed ~0.4% this morning as CEZ shares have corrected yesterday's rally. The majority state-owned energy utility received a boost at the start to the week from the government's recommendation to increase dividend payouts this year.