The Czech koruna shot up yesterday, as it climbed to a new all-time high of EUR/CZK 28.75. The current positive mode materialized in a significant improvement of actual historical record. The koruna headed south from the real beginning of the session in step with all regional currencies. The unit shrugged off all yesterday’s data, which were mildly negative for the currency. Lower inflation points to lower probability of a interest rate hike in near future. Nevertheless, only deterioration of foreign trade or current account might affect the FX market now. The koruna opened at 28.875 and closed at 28.75. Today the calendar is empty and also tomorrow’s industry output may hardly affect the FX market. The current positive mood may again push the koruna higher, but yesterday’s jump opened some room for correction.
(CSOB - Investment research)