UniCredit does not see imminent CZK intervention. It says the move higher in EUR/CZK on the back of recent poor Czech data will be at least partially welcomed by the Czech National Bank. UniCredit estimates the 1.5% move higher in EUR/CZK from where the CNB assumed it to be in its last inflation report implies an easing of monetary conditions equivalent to 50bps. "In other words, this move ...though likely faster than the CNB would desire, is helping to generate a much needed weakening in monetary conditions." UniCredit sees no need for further action from the CNB before its next inflation report on Feb. 7. EUR/CZK at 25.53.
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