The Czech Koruna has a stellar performance today, with EUR/CZK sinking past CZK23.5 for the first time since 2008, as the currency easily beats its EMEA peers. The rate last deals -0.162 at CZK23.468, with bears looking to force their way through the nearby Aug 1, 2008 low of CZK23.445, followed by key support from Jul 21, 2008 low of CZK22.877.

• The Koruna has outperformed its CE3 peers, with PLN/CZK last -243 pips at CZK4.9892, as bears target recent all-time lows locate around the CZK4.95 figure. CZK/HUF has added 911 pips and sits at HUF16.0835 despite the formation of a 50-DMA/200-DMA death cross earlier this month.
• The Koruna continues to benefit from the CNB's determination to keep it strong as a measure to tame inflation. Central bank chief Ales Michl reiterated this view in his weekly column yesterday. Recall that the CNB maintains a backstop against Koruna weakening and last year repeatedly intervened in FX markets to prop up the currency.
• The moderation in Czech industrial PPI inflation was considerably smaller than expected, with prices growing 19.0% Y/Y in January versus +20.1% prior and +14.6% expected. Trinity Bank assessed that this amplifies pressure on the CNB to raise interest rates, even as the central bank is not expected to do so.