Koruna On Back Foot, Michl's Vote Proves Decisive In CCyB Decision

EUR/CZK has extended yesterday's gains and now deals +0.057 at 25.379, faring slightly better than its CE3 peers so far. The EM FX space remains under pressure due to the well-documented spillover from the Asia session. The high print of Feb 15 provides the initial layer of resistance at 25.519, while bears keep an eye on the 50-DMA (25.141), round figure support (25.000) and Jan 2 high (24.867).

• The minutes of the recent financial stability meeting revealed that Governor Ales Michl had to cast a tie-breaking vote in the decision on the CCyB rate, which was reduced by 25bp rather than 50bp. Deputy Governor Jan Frait was not present at the vote.
• The highlight of this week was the CNB's monetary policy decision, with the Bank Boaard cutting its two-week repo rate by the expected amount of 50bp. Click here to see our review.
• The PX Index has clawed back yesterday's losses driven by a weak performance of state-dominated utility CEZ, which reported weaker-than-expected outlook for earnings and dividend.