Koruna Unfazed By Czechia's Widening Fiscal Deficit

EUR/CZK remains stuck in a familiar range, last changing hands -0.032 at CZK23.584. The rate still sits above its 50-DMA after closing above that moving average yesterday for the first time since late March.

• Czechia's YtD budget deficit widened to a record CZK200.0bn in April from CZK166.2bn in March. Finance Minister Zbynek Stanjura commented that the increase in the YtD budget shortfall from the CZK100.1bn a year ago was caused by rising pensions and social benefits, as well as compensations for energy prices and state investments. The data amplifies pressure on the government to finalise its austerity package, with widening fiscal deficits posing a hawkish risk for the CNB.
• Reminder that the Czech National Bank will announce its monetary policy decision tomorrow at 13:30BST/14:30CEST. Our preview of the decision can be accessed here.