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Koruna Rangebound In Pre-Holiday Trade

CZK

EUR/CZK trades -0.005 at 25.292, struggling for clear direction as pre-Easter local headline flow fails to provide any notable catalysts. The rate continues to hover above the 50-DMA (25.175), which limited losses on Mar 18. A move through that moving average and the round figure of 25.000 would expose Jan 2 high of 24.867. Conversely, bulls look for an upswing towards 25.519.

  • Denik N reported that extra spending requests from individual ministries amount to more than CZK40bn compared with the current budget deficit target of CZK252bn. The ruling coalition is preparing for "difficult negotiations" on the distribution of funds between various ministries.
  • The PX Index has surged past the psychologically significant 1,500 threshold, adding 1.1% so far and printing its best levels since 2008.
  • Looking ahead, Czechia will release final Q4 GDP data tomorrow morning.

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