Koruna Reverses Initial Downtick, Economic Confidence Data Show Mixed Picture

EUR/CZK printed a new cyclical high at 24.919 before pulling back amid renewed bid into EM FX. The rate last deals -0.047 at 24.828. From a technical perspective, bears look for losses towards Jan 8 low of 24.458. On the flip side, bulls keep an eye on the psychological 25.000 figure.

• CNB's Jan Prochazka said that the pace of rate cuts will be adjusted to the degree of the Bank Board's "certainty" that price stability is restored to the parts of economy where inflation has been stubborn.
• The Constitutional Court will rule on the government's pension reforms at 12:00GMT/13:00CET. The measures were part of the ruling coalition's efforts to reduce rising fiscal deficits.
• Czechia's overall economic sentiment slipped, snapping a three-month series of increases, as a deterioration in business confidence offset an improvement on the consumer side. The CZSO noted that construction was the only sector where business confidence improved.