Koruna Ticks Lower, PX Index Advances

EUR/CZK trades +0.009 at CZK23.698 as we type, holding yesterday's range and operating in the vicinity of recent multi-year lows. The rate has struggled to refresh those cyclical lows through the past week or so, but there are no signs of bullish momentum picking up either, even as the RSI returned from oversold territory at the start of the month.

• Bears need a dip through Feb 15 low of CZK23.615 before taking aim at Aug 1, 2008 low of CZK23.445. Conversely, bulls keep an eye on the 50-DMA, which intersects at CZK23.932.
• The PX index has advanced, adding ~1% thus far, with participants looking for confirmation that the recent spell of weakness could evolve into a bull flag formation. CZGB yields are generally slightly higher across the curve.
• The local headline flow has been light in the absence of tier-1 data releases. Prime Minister Fiala told U.S. President Biden and CEE leaders that his country has sent CZK40bn worth of weapons to Ukraine since the start of the war, which included CZK10bn in aid from the Czech government. Separately, Czech army chief told reporters that no outcome of the war will entail more security, with Russia set to be more hostile and unpredictable.