Koruna Slightly Weaker, Fiscal Matters Continue To Draw Attention

EUR/CZK last trades +0.015 at CZK23.557 as the pair seeks for fresh catalysts that could give it clearer directionality. Bears continue to eye May 9 low of CZK23.340 for initial support, while bulls see May 19/Mar 28 highs of CZK23.797/23.820 as their near-term target.

• There was a generally brief downward adjustment to Czechia's FRA curve after the release of weak industrial production and construction output data this morning, even as trade surplus came in wider than expected. Most of the curve has retraced the move by now, but 9x12 contracts remain well below yesterday's closing levels.
• Hospodarske Noviny reported that Finance Minister Zbynek Stanjura's spending-cut plans have caused such backlash from coalition partners that they will be discussed directly by party leaders. According to the newspaper, some government members "are now criticising the proposed savings as blunt cuts," although only off the record.
• According to Seznam Zpravy, Czechia's new security strategy will be based on the assumption that the country could find itself at war, while explicitly naming Russia and China as threats to Czech and Euro-Atlantic security. The new strategy has not been made public yet, but excepts have been leaked to Seznam Zpravy.