Koruna Softens Even As M'fing PMI Comes In Better Than Forecast

EUR/CZK continues to operate in close proximity to the 200-DMA (24.795), last +0.031 at 24.718. A move through that moving average would bring the 50-DMA (25.054) and 100-DMA (25.103). Meanwhile, the low print of Jan 8 provides the initial layer of support at 24.458.

• Czechia's S&P Global Manufacturing PMI recovered to 46.1 in May from 44.7 prior, beating the consensus forecast of 45.5. The accompanying commentary was generally downbeat, pointed to the continued worsening of conditions in the manufacturing sector, despite a slower rate of decline. It also noted that "the rate of charge inflation picked up to the fastest since April 2023, as upside inflationary risks remain a challenge for the Czech National Bank (CNB)."
• CZGBs are slightly firmer across the curve, with 7s outperforming. The PX Index is little changed at typing.
• Looking ahead, the Finance Ministry will release May budget data at 13:00BST/14:00CEST.