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Koruna Slips Amid Thin Local Headline Flow

CZK

EUR/CZK has by now established itself below its 200-DMA but struggles to decouple from this moving average and keeps gravitating towards it. The rate last deals +0.036 at 24.750, while the 200-DMA intersects at 24.818. A break here would open up the 50-DMA at 24.913. On the flip side, bears look for losses past Jun 7 low of 24.537 and Jan 8 low of 24.458.

  • The koruna underperforms its CE3 peers at the margin, following yesterday's moves away from cyclical extremes in PLN/CZK and CZK/HUF.
  • CNB's Zamrazilova noted that she will decide between a 25bp and 50bp cut at next week's Bank Board decision.
  • The belly of the CZGB curve underperforms at the margin. Elsewhere, the PX Index has edged higher today.

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