Koruna Little Changed, Eyes On CNB

EUR/CZK operates at CZK23.727, a touch higher on the day, with bulls setting their sights on the 50-DMA, which intersects at CZK24.027. Conversely, bears need a dip through Feb 10 low of CZK23.664 before taking aim at Aug 1, 2008 low of CZK23.445.

• CZGB yields sit slightly above neutral levels, with mild steepening impetus evident. A rally in the PX index has taken it ~1% higher this morning, with the equity benchmark printing new multi-month highs as a result.
• New Czech policymakers Jan Prochazka and Jan Kubicek took office today, replacing Marek Mora and Oldrich Dedek. The monetary policy orientations of the new policymakers are veiled in uncertainty, as they are yet to publicly discuss their views on the matter. That being said, President Zeman generally showed a dovish bias in his Bank Board appointments last year.
• The latest rounds of central bank speak pointed to continued rate stability. Governor Ales Michl said that rate cuts are off the table for now, while Deputy Governor Frait noted that hikes are unlikely if inflation slows as expected.
• Czechia's current account deficit shrank to CZK7.77bn in December from CZK39.30bn, which was less than the expected CZK24.80bn.