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Koruna Weakens In Lead-Up To CNB Meeting

CZK

EUR/CZK trades +0.055 at 24.536, with bulls testing the 61.8% retracement of the Oct 26 - Nov 29 sell-off at 24.539, followed by Oct 26, 2023/Jul 7, 2022 highs of 24.747/24.797. Bears keep an eye on Nov 29 low of 24.203.

  • The focus turns to the Czech National Bank, with its Bank Board set to announce the final monetary policy decision of 2023 on Thursday. It is very much a "live meeting" after policymakers held off on starting the rate-cutting cycle last month. This time around, most analysts expect the central bank to cut the two-week repo rate by 25bp, albeit it is by no means a done deal.
  • Czechia's industrial PPI rose 0.8% Y/Y in November, printing slightly below the +1.2% consensus forecast.
  • CZGB yields are mostly lower across the curve, while the PX Index has added 0.5%.
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EUR/CZK trades +0.055 at 24.536, with bulls testing the 61.8% retracement of the Oct 26 - Nov 29 sell-off at 24.539, followed by Oct 26, 2023/Jul 7, 2022 highs of 24.747/24.797. Bears keep an eye on Nov 29 low of 24.203.

  • The focus turns to the Czech National Bank, with its Bank Board set to announce the final monetary policy decision of 2023 on Thursday. It is very much a "live meeting" after policymakers held off on starting the rate-cutting cycle last month. This time around, most analysts expect the central bank to cut the two-week repo rate by 25bp, albeit it is by no means a done deal.
  • Czechia's industrial PPI rose 0.8% Y/Y in November, printing slightly below the +1.2% consensus forecast.
  • CZGB yields are mostly lower across the curve, while the PX Index has added 0.5%.