CNB to publish FX intervention data today

The CZK is one currency which has remained remarkably stable through the past month's EM carnage - how long will this last? The CZK's stability is surprising especially because the Czech Central Bank's (CNB) EUR-CZK floor of 27.00 only prevents declines in EUR-CZK below 27.00, not a rise. 

"If CZK will be compared with the other regional currency which had been under appreciation pressure until August - the Israeli shekel -  EUR-ILS is seen reversed its downward trend of previous months and began to rise in late August as the EM meltdown began; in contrast, EUR-CZK has shown solid downward tendency and continued to drift towards its 27.00 official floor", states Commerzbank. 

In this context, today's reserve and FX transaction data from CNB will be crucial to watch: it will make public whether or not the CNB has had to intervene to prevent a breach of the floor through August. If the CNB indeed had to intervene, and FX reserves are beginning to rise as a result, then this will increase pressure on CNB to 'exit' FX intervention sooner rather than later, added Commerzbank.