Koruna Ticks Higher Amid Upbeat Data, Then Trims Gains

EUR/CZK slipped this morning and last deals -0.016 at 24.670, following yesterday's upswing caused by the release of below-forecast inflation data. The koruna started the European session on a slightly firmer footing, before trimming gains. Bears look for losses towards Nov 29 low of 24.203, while bulls keep an eye on Jan 2 high of 24.867.

• CNB Deputy Governor Zamrazilova reiterated that the pace of monetary easing will depend on inflation developments, with the central bank ready to pause or accelerate if needed. She noted that January inflation data will be a key signal for the Bank Board, while she expects policy to remain restrictive for the time being.
• Czechia's current account surplus unexpectedly widened to CZK43.52bn in November from CZK19.84bn prior, beating expectations of a contraction to CZK6.00bn by a wide margin. The upper end of the forecast range in a Bloomberg survey was CZK15.00bn. Separately, ex-auto retail sales rose 0.9% Y/Y in November, beating the -1.6% consensus forecast. Upbeat data releases may have provided some support to the koruna, but their impact has seemingly dissipated.