Koruna Weakens As Dust Settles After First Round Of Presidential Election

EUR/CZK has clawed back its earlier losses and last trades +0.012 at CZK24.009, with bulls looking for further gains towards the 50-DMA, which kicks in at CZK24.238. Conversely, bears keep an eye on Jan 9 cycle low of CZK23.927.

• Retired general Petr Pavel won the first round of Czechia's presidential election and is the favourite in the run-off to be held in two weeks. Although he beat billionaire politician Andrej Babis by a razor-thin margin, he has a better chance of picking up support from eliminated candidates.
• December saw a slowdown in factory-gate inflation across the agriculture, industry and construction sectors, while services PPI growth accelerated, the Czech Statistical Offica said. Industrial PPI inflation printed at +20.1% Y/Y versus +20.8% expected.
• The CZGB curve has shifted higher, with yields last seen 5.1-9.0bp better off. The PX index has lodged some marginal gains.