Koruna Depreciates, Lags Regional Peers

The Czech koruna lags behind its EMEA peers despite local headline flow being relatively thin this morning. CNB's Tomas Holub told Lidove Noviny that next week's Bank Board meeting might boil down to a discussion on the magnitude of a rate cut, but this had been already known, given Holub's openness to a 50bp rate reduction.

• EUR/CZK trades +0.020 at 24.779 and bulls set their sights on Jan 24 high of 24.919 and the nearby 25.0 figure. On the flip side, the focus is on the increasingly distant Jan 8 low of 24.458.
• PLN/CZK is testing cyclical highs as it topped out at 5.7170 today, just shy of Dec 27 high of 5.7175, a key near-term resistance level. CZK/HUF remains in retreat, extending post-NBH losses.
• CZGBs trade 4.1-9.0bp richer across a steepened curve at typing, with core FI space also showing some strength this morning. The PX Index has added 0.3% so far.
• Czechia's M2 money supply came in at +8.3% Y/Y in December, up from +7.9% in the previous month.