CZK: Koruna Inches Lower, CNB Rate Decision Headlines Next Week
Mar-21 09:42
EUR/CZK is range-bound, last trades +0.009 at 25.021. Gains through the 50-DMA (25.086) would support the bullish case, while bears keep an eye on Feb 26 low of 24.896.
- Economic confidence in Czechia improved more than forecast amid better-than expected outturns for both consumer confidence and business confidence.
- There is little of note left on the local docket until next Wednesday's monetary policy meeting, which is expected to yield an on-hold decision.
- Earlier this week, two Bank Board members (Seidler, Kubicek) told the media that they would prefer to pause interest-rate cuts next week.
- Separately, the minutes from the CNB's latest financial stability meeting showed that members did not see any substantial increase in cyclical risks.
- CZGB yields are still slightly higher despite paring the bulk of the initial upward move. The PX Index has slipped, continues to operate just shy of 2,100 mark.
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EGB OPTIONS: RXK5 134.50 Calls Lifted
Feb-19 09:38
RXK5 134.50 calls paper paid 24 on 3.1K.
GILTS: Downtick Extends, Futures Eye Next Support
Feb-19 09:35
Gilts continue to tick lower as catch up to overnight weakness in wider core global FI markets, a modest hawkish short end reaction to the mixed CPI data and spill over from supply-related pressure in Bunds all weigh.
- Futures move closer to the 29 Jan low (91.96), which protects more meaningful support at the 24 Jan low (91.52). The short-term bull cycle remains intact above the latter.
- Yields 3.5-4.5bp higher across the curve.
EGB OPTIONS: Bobl call spread
Feb-19 09:15
OEH5 117.25/117.75cs, bought for 7.5 in 3k.
