EUR/CZK rises further as CNB sends out dovish messages

Yesterday's Czech National Bank (CNB) rate meeting went as expected, bringing no change but a shift towards dovish language: The statement did emphasise that disinflationary risk had increased. 

CNB Governor Miroslav Singer also admitted that negative rates and extension of the EUR-CZK floor had been debated at the board meeting. The combination of 1) The prospect of further monetary easing, 2) Decelerating inflation and 3) Continuing pressure on EM currencies, in general, is enough to deter, for the time being, speculative short positions in EUR-CZK, says Commerzbank.