Koruna Weakens On Disappointing GDP Data, CNB To Release Its Comments Later Today

EUR/CZK posted an uptick on the release of worse-than-expected preliminary Q3 GDP data. It has trimmed gains since but remains in positive territory, last operating +0.041 at 24.343. From a technical perspective, the focus falls on Oct 26, 2023/Jul 7, 2022 highs of 24.747/24.797. Conversely, bears look for a pullback towards the 38.2% retracement of the YtD range at 24.159.

• Czechia's GDP contracted 0.7% Y/Y in Q3 versus an advance reading of -0.6%. The economy shrank 0.5% Q/Q versus the previous estimate of -0.3%. On the other hand, S&P Global M'fing PMI released half an hour later came in marginally better than expected.
• Komercni banka commented that the economy "not only remains behind its pre-pandemic levels but is even moving away from it". They think that the economic contraction this year will be deeper than earlier expected, while growth next year will be hindered by strict monetary policy and fiscal consolidation. The CNB will comment on the data at 12:00GMT/13:00CET.
• The Finance Ministry will publish November budget outcome at 13:00GMT/14:00CET. ING wrote that "today's number could help us estimate how much the Ministry of Finance will have to issue in terms of bonds for the rest of the year".
• CZGB curve runs a tad flatter, while the PX Index has added 0.3%.