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Retail Sales and Unemployment Rate To Watch This Week

CZECHIA
  • Important economic data to watch this week are Industrial output on July 7, retail sales on July 8 and unemployment rate on July 9.
  • Next CNB meeting will take place on August 5, and policymaker are very likely to raise the benchmark rate by another 25bps to 0.75%.
  • According to the STIR market, the FRA 6Mx9M are trading 73bps above the Pribor 3M, which implies that traders are still expecting another 3 hikes for the rest of the year.
  • USDCZK ticks higher this morning after testing its 100DMA at 21.47 earlier this morning, next resistance to watch on the topside stands at 21.76 (200DMA). On the downside, first support to watch below 21.47 stands at 21.31.
  • Czech 10Y yield continues to gradually retrace higher in July, breaking above its 50DMA (1.71%) and gradually approaching its next resistance at 1.76% (100DMA). On the downside, key support to watch stands at 1.60%.

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