The Czech koruna was pretty quiet on Friday. Only in the morning it attempted to drop but it hovered within the tight range of EUR/CZK 28.97 and 29.03. There was no reasonable incentive and even regional peers moved little. The market waited for evening’s decision of the FOMC. Today the November PPI and mainly October current account balance are on agenda. PPI is not really important but the current account may drive at least temporary the market. The our forecast CZK 8.5 bn deficit might be neutral for the market. Moreover, a change in FOMC wording and subsequent drop of the dollar may open some room for a stronger koruna. A bulk of Polish figures may deteriorated atmosphere in the afternoon. EUR/HUF in recovery mode on the back of the FOMC meeting.
(CSOB - Investment research)