Koruna Takes Its Cue From Wider Market Sentiment

EUR/CZK has ticked higher but holds a familiar range so far, with EM FX undermined by fragile risk sentiment. The pair deals +0.034 at 24.160, with the koruna outperforming its CE3 peers. A move through the 24.3 resistance area would suggest that bulls are regaining control. Bears see round figure/Aug 21 low of 24.000/23.977 as their initial target.

• Czechia's data releases pause today, following the release of weaker-than-expected Q2 wage data on Monday, which may potentially push the Bank Board marginally in the dovish direction. Further data will be published from tomorrow, with construction output, industrial production and trade balance due to hit the wires at 08:00BST/09:00CEST.
• Labor and Social Affairs Minister Marian Jurecka said that the delay in the implementation of the government's pension reforms by a month will cost the budget CZK4bn as more people are expected to apply for early retirement. Coincidentally, the application of the old mechanism to the next indexation of pensions will not generate any additional cost as Q2 real wage growth (which feeds into the formula for the indexation of pensions if positive, the new rules cut its weighting) remained negative.