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Koruna Slips In Line With Regional Trend

CZK

EUR/CZK snaps a three-day losing streak and advances as East European currencies show vulnerability to concerns surrounding the European banking sector. The rate last deals +0.073 at CZK23.691 and bulls look for further gains towards Mar 17 high of CZK24.137. Conversely, bears keep an eye on Mar 1 low of CZK23.343.

  • CZGB curve has bull flattened, with yields last seen 1.2-5.8bp lower. The PX index is ~2.0% worse off, approaching support from its 100-DMA/Mar 20 low.
  • Confidence in Czechia's economy improved this month to 1.2 from -1.2 as firmer business confidence outweighed marginal deterioration in consumer sentiment.
  • Reminder that the CNB will announce its monetary policy decision next Wednesday and are widely expected to keep the repo rate unchanged at 7.00%.

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