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Retail Sales Rose 16.5% YoY in May

CZECHIA
  • This morning, economic data showed that Czech retail sales rose slightly more than expected in May, up 16.5% YoY (vs. 15.7% exo.) and down from revised 21.6% the previous month.
  • Next important economic data to watch will be unemployment rate on July 9.
  • Next week, investors will also closely watch June CPI print (coming out on July 13), which is expected to decelerate to 2.7% (from 2.9% the previous month).
  • 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%.
  • USDCZK ticks lower this morning, currently trading slightly above its 200DMA at 21.75; next resistance to watch on the topside stands at 22. On the downside, first support to watch below 21.48 (100DMA) stands at 21.31.
  • Czech 10Y yield ticks slightly lower this morning and is currently flirting with its 50DMA (1.71%); ST resistance to watch on the topside stands at 1.76% (100DMA). On the downside, key support to watch stands at 1.60%.

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