The Czech koruna expanded its gains yesterday. It moved from EUR/CZK 28.50 in the morning to 28.40 at the end of American trading. There was no domestic stimuli behind the price action. Yet the overall positive sentiment in the region is pushing the koruna higher after Easter. Today no data are on agenda. Hence the positive atmosphere may again push the currency south. The end of the week is also supportive, as the koruna has usually tendency to strengthen on Friday afternoon. However, from the technical picture the market has limited room in positive territory. There is lower limit of daily Bollinger band at 28.37. Therefore the koruna may advance only slightly, unless something significant happen.
(CSOB - Investment research)