The Czech koruna showed some volatility on Monday. In the morning it moved south in step with the whole region. A weakening of the dollar might have be a partial reason. The unit opened at EUR/CZK 29.11 and it touched its daily high at 28.98 at noon. Nevertheless, one bigger deal sent the koruna back to 29.05, although other regional peers kept strengthening. The currency hovered around the level by the end of the European trading. In the evening, the koruna caught up its regional peers and returned to its daily high. The slightly weaker October industrial output had no effect on the market. Today the market may wait for the outcome from the FOMC meeting. Any hint of end of rate hike cycle may help to the region. A weaker dollar may influence the koruna same way. However, the koruna proved yesterday, that the market is reluctant to strengthen further now.
(CSOB - Investment research)