The Czech koruna stayed in a tight range during most of the yesterday’s session near key euro resistance at 28.37 EUR/CZK. On the other hand it was not truly quiet trading since the volumes were surprisingly pretty high. The w eak US dollar, post-election optimism in Hungary and expectations of very good figures in Poland (scheduled for Wednesday) play in favor of all central European currencies. That’s why we still bet on stronger koruna during today as well as for the rest of the week. Hence we believe the 28.37 barrier could be broken and the koruna might shift towards 28.30. There are no domestic market-movers scheduled for most of this week except of CNB’s board meeting on Thursday, where a new macro-projection is to be discussed.
(CSOB - Investment research)