Manufacturing PMI Disappoints, Monthly Budget Balance Eyed

EUR/CZK sits +0.052 at 24.623, with the koruna lagging its EMEA peers. Topside focus falls on Oct 26 high of 24.747 and Jul 7, 2022 high of 24.797. On the flip side, a dip through the 50-EMA at 24.445 would draw attention to the key 24.3 support area.

• Czechia's S&P Global Manufacturing PMI improved to 42.0 in October from 41.7 prior, missing the 42.4 consensus call. S&P's Sian Jones commented that "output, new orders and employment contracted further" and "job losses mounted,as employment was cut at the second-fastest pacesince the initial stages of the pandemic". Seeing "downward pressure on prices," S&P expect the CNB to "begin cutting interest rates at their November meeting".
• The downbeat PMI reading comes after preliminary data showed that Q3 GDP outturn was worse than expected, with the economy contracting 0.6% Y/Y. These are some of the last data releases before the CNB rate decision and release of new forecasts tomorrow (click here to see our preview).
• Czechia's October budget balance will cross the wires at 13:00GMT/14:00CET. Fiscal results are under close scrutiny amid the government's efforts to reduce budget deficits.