Koruna Tad Firmer, Domestic Data In Focus

EUR/CZK last trades -0.015 at CZK23.526, remains heavy in the wake of recent losses. The rate closed below support from May 26 low of CZK23.588 yesterday, completing a mini-double top formation, as the earlier recovery lost steam. For bears, the next technical target is provided by May 9 low of CZK23.340, followed by Apr 14 low of CZK23.207. Conversely, bulls look for a rally above May 19/Mar 28 highs of CZK23.797/23.820.

• Czechia's industrial output unexpectedly shrank in April, monthly trade surplus was wider than forecast, while construction output contracted. Komercni banka commented that "although supply chain problems and price pressures in the manufacturing sector have largely receded into the background, the domestic industry is likely to continue to struggle with weak demand in the coming months." They noted that the government's austerity measures and elevated interest rates bode ill for the near-term prospects for the construction industry.
• CZGB curve has twist flattened at the margin, while the PX index has shed ~0.3% so far.