CZK: Koruna On Defensive, Jackson Hole Symposium Eyed
Aug-22 09:24
EUR/CZK consolidates yesterday's gains in anticipation of Fed Chair Powell's Jackson Hole speech. The pair last deals +0.015 at 24.584, approaching key resistance from the 50-DMA, which kicks in at 24.623. Bears keep an eye on Aug 11 low of 24.389, followed by Nov 29, 2023 low of 24.203.
- Defence Minister Černochová endorsed President Pavel's view that Czechia could contribute troops to a potential peacekeeping mission in Ukraine once a ceasefire is in place.
- CNB Governor Aleš Michl will attend the Jackson Hole Symposium. He will not speak on any of the panels but may later publish his comments with insights from the event.
- CZGB yields are mostly a tad higher; the PX Index is marginally softer.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
FOREX: AUDUSD Approaching Key 0.6595 Resistance
Jul-23 09:24
- AUD and NZD remain the clear outperformers on Wednesday, benefitting from the buoyant price action for major equity benchmarks on the back of a US/Japan trade deal being reached overnight. Renewed bearish dollar sentiment this week is underpinning the move higher for antipodean FX, with the latest comments from Tsy Sec Bessent aiming at extending a tariff truce and widening the discussions with China also providing a tailwind.
- Furthermore, recent dovish data surprises in both Australia (weak June employment report) and New Zealand (softer Q2 CPI) may have skewed short-term positioning, potentially bolstering the chances for a more protracted squeeze as we approach some interesting chart points.
- Specifically for AUDUSD, spot is approaching a cluster of daily highs, just below the 0.66 handle. The renewed strength has been bolstered by the pair failing to close below its 50-day EMA, keeping the bullish trend setup intact. The July 07 cycle high is located at 0.6595, and clearance of this hurdle would resume the uptrend.
- Above here, resistance is scant until 0.6688, the Nov 07 high, printed shortly after the US election last year. Additionally, 0.6700 represents the 76.4% retracement of the Sep 30 ‘24 - Apr 9 bear leg.
- AUDJPY also stands out on the chart, having broadly respected the prior breakout level of 95.75 on Tuesday and bouncing firmly today. An initial target was reached last week at 97.33 and this remains the primary resistance. A break above here would target a move back to the 2025 highs at 99.17.
GREECE T-BILL AUCTION RESULTS: GTB results
Jul-23 09:21
| Type | 26-week GTB |
| Maturity | Jan 23,2026 |
| Amount | E500mln |
| Target | E500mln |
| Previous | E500mln |
| Avg yield | 1.71% |
| Previous | 1.75% |
| Bid-to-cover | 1.93x |
| Previous | 2.12x |
| Previous date | Jun 25, 2025 |
GILT AUCTION RESULTS: Solid 4.375% Jan-40 gilt auction
Jul-23 09:07
- It follows a well-received long-dated BOE APF operation on Monday.
- The yield tail was just 0.1bps, well below the 0.6-1.0bp range across the prior three re-openings in Feb, Apr and Jun.
- Bid-to-cover ratio of 3.69x also above the 2.58-2.89x prior range.
- A reminder that today’s auction was smaller (GBP3bln) than the last three re-openings (GBP3.25bln).
- The lowest accepted price of 92.946 was in excess of the 92.9385 pre-auction mid. The secondary price of the Gilt hasn’t seen much reaction following the results though, currently 92.935.
