Outlook for EUR/CZK: Danske Bank

Quotes from Danske Bank:

-The very low inflation in January and the disappointing Q4 GDP will put pressure on the Czech National Bank to consider lifting the floor. We do not expect the CNB to do that any time soon, but we will probably get more dovish comments going forward.

-This should effectively keep a floor under EUR/CZK at around 28 (rather than the official 'floor' of 27). As a result, we maintain our EUR/CZK forecast at 28.0, 28.0 and 28.0 in three, six and 12 months.