Koruna Strengthens, Announcement Of Key Reforms Expected Thursday

EUR/CZK last changes hands -0.041 at CZK23.356, losing altitude for the sixth consecutive day. The key near-term bearish target is provided by CZK23.207, which limited losses on Apr 14. Bulls need a rally above Mar 1 high of CZK23.705 to find poise and take aim at Mar 28 high of CZK23.820.

• From a cross-asset perspective, CZGBs curve runs slightly steeper at typing as the short-end has ticked higher. The PX index trades ~0.5% lower but is yet to test the nearby 50-DMA.
• Seznam Zpravy reported that the government is preparing to announce its fiscal consolidation package and pension reform at a single event on Thursday. Leaders of coalition parties are expected to negotiate the final details today.
• This comes as Czechia's financial watchdog warned that the country is running out of time to rein in debt, while the CNB last week said that it sees too loose fiscal policy as a key hawkish risk to the interest-rate outlook.
• Czechia's economic data came in better than expected. Industrial output rose 2.4% Y/Y in March (versus +1.9% expected) while trade surplus widened to +CZK15.9bn (was expected to narrow to +CZK14.0bn).