The Czech koruna was profiting from improved regional mood at the end of the last week and shifted towards 28.37 EUR/CZK. There are no domestic market-movers scheduled for most of this week. The exception is CNB’s board meeting on Thursday, where A new macro-projection is to be discussed. For the rest of the week the regional sentiment should be decisive once again. Investors are primarily focused on final political agreement on more stable and still pro-reform coalition in Poland.
Beside that they are also expecting credible public finance reform plans from the new Socialist-led government in Hungary to be revealed soon. If they match market hopes, there is a potential for further strong gains on all central European currencies. These can be further supported by the falling US dollar in global markets.
(CSOB - Investment research)