CNB likely to cut today by 25 bps

Headlines Currencies: CZK weaker despite a global rate cut Fixed Income: CNB likely to cut today by 25 bps Currencies The Polish zloty had an extremely turbulent session as the EUR/PLN struggled to stay within the 3.40-.50 range yesterday. Eventually, the zloty managed to regain confidence following a violent correction early in the session, which brought the pair to a fresh 6 month highs. The coordinated CB rate cut was positive for sentiment and even though we doubt whether it will be enough to push the zloty back into strengthening mode just yet, in the short term it should sooth the extreme volatility seen most recently in the distressed market. The Czech currency surprisingly eased yesterday despite the rate cut of the major central banks. The negative price action was probably related to market speculation on a domestic... [read full story]