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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CZECHIA
- Forward rates have been rising in the past two days following CNB Deputy Governor Mora’s comments on the terminal rate.
- Mora said in an interview yesterday that Czech rate may peak ’well above 5%’.
- With the FRA 3Mx6M currently trading above the at nearly 100bps above the Pribor 3M, market is pricing in a terminal rate at 5.5%.
- Following the sharp CZK recovery, a 50bps hike is very likely for the next meeting on March 31, with risks being skewed to the upside slightly (i.e. 75bps).
- Forward rates are currently pricing in between 50bps and 75bps hike, with 1Mx4M trading at 60bps above Pribor 3M.
- EURCZK is currently trading below its 61.8% Fibo retracement of the 24.0940 – 25.9360 range (2022 low high); ST support to the downside stands at 24.50.
- Delivering aggressive hikes from the current level of rates will accelerate the economic downturn.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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