The Czech koruna was little changed on
Thursday due to holiday in the Czech
Republic. On Wednesday, it closed slightly
above EUR/CZK 29.30 and it hovered in the
29.30 – 29.38 range over off-shore trading
on Thursday. Foreign traders were cautious
yesterday because the forint got under
another weakening pressure. Thus the
slowly strengthening zloty failed to inspire
koruna traders.
Today the September retail sales may not
affect the market. They came at 3.8 % y/y,
which is in line with expectation. Thus the
koruna may opened at Wednesday’s close
29.30 and may stay range-bound. We do not
expect any significant domestic incentive.
Moreover, drop of the forint may
counterbalance positive atmosphere on the
Polish market. Finally, the activity might be
lower, as many participants are at prolonged
weekend.
(CSOB - Investment research)