Free Trial

Koruna Slips Despite Continued Bullish Run In Czech Equities

CZK

EUR/CZK trades +0.056 at CZK23.827 as a busy Czech data week gets underway. Bulls continue to eye the descending 50-DMA (CZK24.087) for initial resistance, while bears look for a resumption of losses past Jan 30, 2023/Oct 30, 2008 lows of CZK23.716/23.700.

  • CZGBs are broadly weaker, with global interest rates adjusting higher amid the reassessment of the central bank pivot narrative.
  • The PX index has edged higher, beating its CE3 rivals WIG20 & BUX. It tested cycle highs printed last Friday but is yet to stage a convincing break. Moving-average studies provided a strong bullish signal as the 50-DMA crossed above the 200-DMA, completing a "golden cross" formation.
  • Czechia's trade deficit narrowed more than forecast in December, to CZK1.2bn from CZK24.5bn prior versus CZK19.0bn expected. Meanwhile, industrial output rose 1.3% Y/Y in December, missing the +3.3% median estimate, providing evidence of cooling economic activity in Czechia.
  • Czechia's economic docket is heavy with data this week, with retail sales due tomorrow and unemployment coming up Wednesday. Looking further afield, January CPI readings provide the focal point this week. Inflation is expected to have accelerated at the start to the year, albeit the dominant view is that the spike will be temporary.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.