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Koruna Slips, CNB Gov Reaffirms His MonPol Stance

CZK

EUR/CZK ground higher to a session high of CZK24.289, trimmed some gains and and last changes hands +0.012 at CZK24.279. On the topside, bulls look for gains past the 50-DMA/Nov 25 high at CZK24.405/24.426. Conversely, bears see Nov 8 low of CZK24.244 as their initial target.

  • CNB Governor Michl reiterated his familiar stance on monetary policy, noting that the current level of interest rates is restrictive enough, with monetary policy tightening making inroads into the real economy with a lag.
  • CZGB curve has flattened this morning, with yields last seen +4.2bp to -2.5bp.

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