Koruna Outperforms CE3 Peers

EUR/CZK has edged lower, widening its recent divergence with the 200-DMA, which had earlier attracted price action in the second half of May. The rate last deals -0.044 at 24.594 and the 200-DMA intersects at 24.808. A return above that moving average would give bulls some reprieve. Conversely, an extension of losses past Jan 8 low of 24.458 would provide a bearish signal.

• PLN/CZK continues to lose altitude, with the 50-DMA recently crossing below the 100-DMA. Bears look for a dip through the 200-DMA (5.6738) as the pair last deals at 5.6942.
• CZK/HUF shot higher this morning, printing its best levels since October, as the forint took a hit from local CPI data. The rate sits at 15.9819, with bulls looking for a breach of the psychologically significant 16.0 figure.
• CZGB yields sit slightly higher across the curve, with 5s underperforming. The PX Index is flirting with its 50-DMA, crossing below that moving average this morning as bears have the upper hand.
• Czechia's unemployment rate fell to 3.6% in May from 3.7% prior, in line with expectations.