Koruna On Firmer Footing, International Reserves Expand

EUR/CZK continues to trade below neutral levels, last -0.015 at CZK24.011, after lodging new multi-year lows of CZK23.927 earlier today. The next technical targets on the downsides are CZK23.700 (Oct 30, 2008 low) and CZK23.445 (Aug 1, 2008 low). Conversely, bulls look for a rebound towards the 50-DMA, which kicks in at CZK24.279.

• All eyes are on the presidential election this week, with the three leading candidates due to cross swords in a televised debate this Wednesday. In the meantime, a Prague court freed ex-PM Babis of fraud charges this morning, removing a significant obstacle to his presidential bid.
• The unemployment rate among Czechs aged 15-65 rose to 3.7% last month from 3.5% prior, printing below the expected 3.8% level. Elsewhere, the final reading of Q3 GDP growth was revised to +1.5% Y/Y from the flash +1.5% reading, with quarterly numbers left unchanged.
• The CNB said that Czechia's foreign reserves rose to $141.0bn in December from the revised $137.2bn prior.
• Elsewhere, CNB officials struck some marginally hawkish notes in the weekend round of comments.