Koruna Tad Weaker But Familiar Range Remains Intact

EUR/CZK edged higher early doors but has now pared those modest gains. The uptick came about as Czechia's Q4 wage data crossed the wires, with average monthly real wage growth falling 1.2% Y/Y (BBG estimate: -1.1%; CNB estimate: -1.3%). The data should not be a needle-mover for the CNB, given that it printed close to the expected levels.

• Komercni banka commented that real wage growth into the end of 2023 was close to the level at the turn of 2017 and 2018. Following the release of the data, they still expect the CNB to reduce interest rates by 75bp this month, which would still keep monetary policy settings restrictive.
• The PX Index finds poise after falling 3.5% from the Feb 22 peak. The index has added 0.2% today, with CEZ shares virtually unchanged as the utility draws renewed attention, as its minority shareholders are protesting against the government's actions vs. the energy company.
• EUR/CZK sits +0.011 at 25.387, holding a familiar range. Participants look for fresh cues after a period of consolidation. Should the pair move beyond Feb 15 high of 25.519, bulls would eye a resumption of the uptrend. Bears look for losses past Jan 2 high of 24.867.