The Czech koruna opened Wednesday’s session on 29.265 EUR/CZK and started to profit largely from improving regional sentiment, which was from a large part the consequence of sliding US dollar. The koruna closed at 29,170 EUR/CZK. During today the trading might be nervous ahead of CNB´s rate decision. Highly probable interest rates without change should not play in favor of the koruna, especially as investors are expecting hikes in the eurozone. Also significant gains from the last session play rather in favor of mild correction for today.
(CSOB - Investment research)