The American dollar strengthened practically throughout the Asian and European sessions, as well as the European one. Of course, the euro was not benefited by the early German industrial production data for z. It disappointed sharply and recorded its fourth month-on-month decline in ad. Life’s decline was mainly driven by production in the automotive, electrical and pharmaceutical industries. The data thus indicate that after the decline in the economy by 0.1% q/q for this quarter, the quarter may also end with a negative sign, and Germany may thus enter a recession. The dollar then received support from a positive comment from the Minneapolis Fed’s N. Kashari.
The strong dollar on the global market also contributed to the weakness of the koruna. The five euro slowly weakened throughout the day towards 24.65 CZK/EUR. In the morning, the pitom quotation was about 10 hals lower. Today, the koruna weakened against the dollar, where the exchange rate moved from a range of 22.95 CZK/USD to 23.10 CZK/USD. From home, we managed to sell a small amount of life’s retail needs in accordance with our expectations. They confirmed the persistent weakness of domestic demand. We commented on the data in more detail here https://bit.ly/3FKd9rr.
Author: Jan Vejmlek