Koruna Weakens On Eve Of CNB MonPol Decision

EUR/CZK failed to test support from the 23.6% retracement of the YtD upswing at 24.316 and has moved away from that level, last sitting +0.074 at 24.426. Komercni banka write that the partial reversal of yesterday's gains for the koruna could be attributed to technical factors, without mentioning specific levels.

• The focus turns to the CNB's monetary policy decision, which will be announced tomorrow. Raiffeisenbank's Vratislav Zamis wrote in Hospodarske Noviny that a clash of opinions on the optimal timing for interest-rate reduction can be expected at this week's Bank Board meeting. Zamis suggests that the November projection may provide a justification for cuts already this year. Not all economists share this assessment, as indicated in the summary of sell-side views in our CNB preview.
• The PX Index has extended its recent losses, retracing more than half of its Sep 11 - 14 advance. The index operates 0.3% below neutral levels as we type.