EUR/CZK Pulls Back From Two-Month Highs

EUR/CZK snaps a six-day winning streak which included a 1.2% surge yesterday, with the pair taking out its 50-DMA and 100-DMA as a result, closing above the latter moving average for the first time since late September. The rate has now returned below its 100-DMA and last changes hands -0.092 at CZK23.975 as Credit Suisse announced plan to borrow up to CHF50bn from the SNB, while the CNB said that Czech banks have "no significant financial links" to the beleaguered Swiss lender.

• From a technical standpoint, bears look for a return below the 50-DMA (CZK23.770), which would bring Mar 1 low of CZK23.343 into view. Bulls would be pleased by a rally above Jan 23 high of CZK24.116 and towards Dec 30 high of CZK24.336.
• CZGB yields have moved away from initial lows, while the PX index has added ~1.8% so far, partly unwinding yesterday's losses.
• Czechia's current account balance flipped into a surplus of CZK12.73bn in January from a deficit of CZK7.77bn prior, missing the +CZK14.20bn median estimate.