Koruna Edges Higher Amid Thin Local Headline Flow

EUR/CZK is under light pressure, with domestic headline flow offering little to move the needle for the koruna. The pair has ticked away from recent cyclical highs (25.519) and last deals -0.013 at 25.379, with bears looking for a move through Jan 2 high of 24.867. On the flip side, bulls see Mar 2 high of 25.936.

• CNB Deputy Governor Eva Zamrazilova and Advisor to the Bank Board Janis Aliapulios warned against joining the ERM II before political consensus forms around the adoption of the euro. They wrote in Bankovnictví that any such hasty decision would create unnecessary risks related to the conditions for entry into the ERM II and staying within the mechanism. The officials argue that if Czechia was to adopt the euro, it would be better to first build political and social agreement around the idea and prepare the economy for the transition, before taking any concrete actions.
• CZGB yields have reduced earlier gains, while the PX Index sits 0.5% higher this morning.