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Koruna Weakens, EUR/CZK Approaches 50-DMA

CZK

EUR/CZK purchases have failed to result in a break above yesterday's high/50-DMA at CZK23.579/23.594 so far. The rate last deals +0.051 at CZK23.546 and a move through these levels would open up Mar 28 high of CZK23.820. On the flip side, bears keep an eye on Apr 14 multi-year low of CZK23.207.

  • CZGBs are slightly firmer across the curve, last trade 0.7-2.9bp richer. The PX index sits marginally above neutral levels at typing.
  • The Chamber of Deputies approved legislation requiring defence spending to match the NATO target of 2% of GDP from next year. The government is looking to bolster national security despite broader plans to rein in public spending.

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