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Poll Suggests Workers Are Worried About Future Pensions, ING Recommend Shorting EUR/CZK

CZECHIA
  • A survey for Mlada Fronta Dnes suggested that 80% of Czech workers do not believe that the state pension will allow them to cover the costs of living in the future, while half of people under the age of 35 do not want to start saving yet. This comes after the government passed controversial law slowing the automatic indexation of pensions.
  • ING said that the CZK "should benefit most from a reduction in risk aversion among CEE peers, and from lower energy prices," and recommended selling EUR/CZK with a target of CZK23.3. Their analysts flagged expectations of hawkish comments from central bank officials to prop up the domestic currency.
  • President Petr Pavel continues his visit to Poland and will meet with Prime Minister Mateusz Morawiecki today.

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