CZK: Koruna Holds Steady, CNB Holds Financial Stability Meeting

EUR/CZK trades +0.007 at 24.166, holding a familiar range, as market participants eye the outcome of the CNB's financial stability meeting and further developments in the formation of the new government. Technically, topside focus remains on the 50-DMA, which intersects at 24.283. Conversely, bears look for losses towards the round figure of 24.0.

• The CNB will announce its decision on macroprudential policy after today's 'major' financial stability meeting. At the interim meeting in September, the Bank Board left the countercyclical capital buffer (CCyB) rate unchanged at 1.25% as 'the economy (...) moved further into the expansionary phase of the financial cycle and the estimated level of cyclical systemic risks [remained] stable.' The latest decision will be announced at 14:30GMT/15:30CET.
• President Pavel rejected the candidacy of Filip Turek, the honorary chairman of the Motorists party, to a cabinet position. Reporters managed to reconstruct his concerns from hand-written notes on the documents held by PM candidate Andrej Babiš as he emerged from a meeting with the President. These included allegations of speeding, threatening a member of the public, as well as dodging asset disclosure and building permit laws.
• The budget saga continues after the Chamber of Deputies returned the 2025 fiscal draft to the outgoing government, arguing that it was impossible to fix.
• CZGB yields have crept higher across the curve. The PX Index trades flat.