CZK: Koruna Firms In Line With Regional Sentiment, PX Index Slips
EUR/CZK remains heavy, consistent with solid performance from CE3 currencies, which corresponds with EUR outperformance in G10 FX space. When this is being typed, the pair deals -0.027 at CZK23.609, having a look under its 50-DMA/100-DMA at CZK23.619/23.614. Further losses past Jun 6 low of CZK23.510 are needed to confirm that bears are gaining momentum. Bullish focus remains on Mar 17 high of CZK24.137.
- The latest edition of the CNB's Financial Market Inflation Expectations showed that the "koruna is expected to be flat close to its current level in the weeks ahead and depreciate somewhat less compared to the May survey at the one-year horizon."
- The PX Index has shed ~0.3% this morning. The reversal of opening gains in CEZ shares (-0.7%) may have exacerbated its weakness, after the utility wrapped up its general meeting yesterday, during which it approved a record CZK145/share dividend.
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US: Debt Ceiling Deal Has Been Reached
NY Times reported negotiators reached a deal "in principle to raise the debt limit for two years while cutting and capping some government spending over the same period, a breakthrough after a marathon set of crisis talks that has brought the nation within days of its first default in history, three people familiar with the agreement said."
JGB TECHS: (M3) Corrects Lower
- RES 3: 151.26 - High Mar 3 2022
- RES 2: 149.75/150.81 - High Nov 11 / High Aug 5 2022
- RES 1: 149.53 High Mar 22
- PRICE: 148.53 @ 16:25 BST May 26
- SUP 1: 147.31/27 - 50-day EMA / Low Apr 18
- SUP 2: 145.80/144.73 - Low Mar 13 / Low Feb 13
- SUP 3: 144.15 - Low Jan 13
JGBs slid sharply Thursday, as hawkish Ueda comments prompted a correction. The bounce Friday helped stall any more protracted pullback, although the gap with next resistance at 149.17 remains. The strong recovery from 147.27, the Apr 18 low confirms the corrective nature of the recent pullback, keeping medium-term attention on 149.53, the Mar 22 high and the bull trigger. A break of this level would confirm a resumption of the uptrend. To the downside, the 50-dma provides support at 147.31, just above the Apr 18 low.
MNI: TREASURY GENERAL ACCOUNT $38.8B MAY 25 VS $49.5B PREV DAY
- MNI: TREASURY GENERAL ACCOUNT $38.8B MAY 25 VS $49.5B PREV DAY
