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Koruna Tad Firmer, Final Q4 GDP Data Confirm Technical Recession

CZK

EUR/CZK remains slightly heavy as the CNB week draws to an end. The rate last deals -0.004 at CZK23.529 as bears look for a move towards Mar 1 low of CZK23.343. On the flip side, a clearance of Mar 28 high of CZK23.820 would expose Mar 17 high of CZK24.137.

  • CZGB yields are slightly higher (1.5-3.8bp) across the curve. The PX index has added ~0.5% as it gains for the third consecutive day.
  • Final data confirmed that Czechia's economy shrank 0.4% Q/Q in the final three months of last year, while annual growth was revised to +0.3% Y/Y from the flash reading of +0.2%.
  • Earlier this week, the CNB kept monetary policy settings and forward guidance unchanged, but added some hawkish comments. Click here to see our full review.

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