Koruna Depreciation Continues

EUR/CZK remains on upward trajectory, with sparse domestic headline flow providing little to challenge that trend. The rate printed a new multi-week high at 24.045 this morning and last deals +0.054 at 24.030, with bulls setting their sights on Mar 17 high of 24.137.

• The key drivers of recent koruna depreciation came from a suite of disinflationary data and a dovish shift in CNB communications, with Deputy Governor Zamrazilova also hitting at a more permissive approach to CZK weakening.
• Parliament continues the debate on pension reforms, with the ruling coalition aiming to finalise the third reading of the legislation today. The opposition is trying to exploit parliamentary procedures and delay the adoption of the amendments as much as possible.