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Koruna Slips Amid Broader Caution, Unemployment Rate Ticks Higher

CZK

EUR/CZK has crept higher amid broader risk-off sentiment and last changes hands +0.014 at 24.243. Bulls set their sights on 24.301, which capped gains on Aug 4 & 7. A breach of this layer of resistance would open up Dec 30, 2022 high of 24.336. Conversely, bears look for a sell-off towards the 200-DMA, which intersects at 23.850.

  • Czechia's unemployment rate rose to 3.5% in July from 3.4% prior, missing the 3.6% consensus forecast. Prior to the release, Komercni banka said that the "Czech labour market is very tight" and any upward adjustment to the jobless rate would be driven purely by seasonal factors.
  • The next notable data release is CPI, coming up Thursday. According to a Bloomberg poll of economists, inflation may have slowed to +8.8% Y/Y in July from +9.7% prior. There is a risk of increased volatility in case of a surprise in inflation data after the CNB formally ended its FX quasi-commitment.

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