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Koruna Trades Sideways Amid Musings On Presidential Run-Off

CZK

EUR/CZK trades +0.008 at CZK24.005 holding a tight range since the European morning, with little to give the pair a fresh direction.

  • Czech front pages are dominated by stories surrounding the presidential elections after Petr Pavel and Andrej Babis advanced to the run-off. Given Pavel's military background, the second round will largely be framed as a contest between distinct approaches to the war in Ukraine, as Pavel (retired army general and senior NATO commander) advocates unwavering military support for Kyiv while Babis (ex-Prime Minister and business tycoon) calls for focusing on domestic issues.
  • The PX index has added ~0.6% so far but is yet to recoup the prior trading day's losses. CZGB yield curve remains higher with light flattening evident.
  • Czechia's economic docket is virtually empty during the remainder of the week.

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