The Czech koruna was little changed in the end yesterday

The Czech koruna was little changed in the end yesterday, despite broad-based correction in the region. Initially, the koruna followed suit and inched lower. It opened at EUR/CZK 28.76 and dropped to 28.85 by noon. Nevertheless, the direction changed in the afternoon and the koruna closed at 28.78. It showed that traders are still positive on the koruna, therefore domestic currency has still some room to strengthen. There was no domestic incentive. Today industrial output nor the 2-year auction may not drive the market. Development of the zloty and the forint might affect the market more. The koruna may catch up yesterday’s losses of its regional peers. However, the sentiment remains positive.

(CSOB - Investment research)