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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
- Today was the last meeting for CNB governor Rusnok, who will soon be replaced by 'dove' Ales Michl (taking over in July).
- With the new board pivoting to a more 'dovish' stance, CZK may weaken slowly against major crosses (i.e. EUR) as uncertainty over policy outlook could weigh on the koruna.
- Some sell-side analysts are expecting a pause following today's decision, as further tightening will accelerate the economic slowdown.
- The chart below shows that the dramatic tightening in financial conditions (i.e. 2Y change in 2Y yield) has been pricing in a significant deceleration in the economic activity in the coming months.
- CNB will hold press conference at 3.45pm CET; EURCZK may rise if the conference happens to be a non-event.
- Key resistance to watch on EURCZK stands at 24.9250 (200DMA).
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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