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Koruna Regains Poise After Sell-Off From Earlier This Week

CZK

EUR/CZK soared through key resistance from its 200-DMA earlier this week and attacked the 50-DMA before losing steam and easing off today. The rate last changes hands -0.034 at 24.876, with bears looking for losses towards Jun 7 low of 24.537 and Jan 8 low of 24.458. Conversely, a clearance of the 50-DMA (24.894) would allow bulls to set their sights on the 100-DMA (25.093).

  • Governor Ales Michl pointed to the equal likelihood of a 25bp and 50bp rate cut at next week's Bank Board meeting in one of the final (if not the final) interviews ahead of the media blackout starting this afternoon. MNI's Policy Team provides more colour on the outlook for the upcoming monetary policy meeting in an interview with Miroslav Singer, former CNB Governor.
  • CZGB yields are slightly higher, the longer end (the 7-15 sector) underperforms. The PX Index is little changed as we type.

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