The Czech koruna was pretty volatile in recent days. First, it slumped to one-week low EUR/CZK 29.485 on Thursday, as the political uncertainty in Poland weighted. Nevertheless, the thin market let the koruna to fly opposite direction on Friday. The unit touched 29.16 in noon, but bounced back to close at the low twenties. The market lacked any domestic incentive, hence traders looked at Polish market, which promised some volatility.
Today the October PPI is usually unimportant for the FX market, therefore market reaction to the fact that the Polish government succeeded in the Sejm might be decisive. The koruna may not flourish below 29.15 and may stay within the range of 29.15-29.30.
(CSOB - Investment research)