Czech koruna moved into negative territory yesterday. It opened at CZK/EUR 29.25 and slowly lost ground to close at the 29.40 zone. There was no domestic stimulus behind the price action, but the influence of the region was decisive. The forex market shrugged off 15-year bond tender. Today domestic calendar is empty, therefore traders may look around for inspiration. Most important might be development in Poland, where minority government is going to ask for confidence. Thus the koruna may follow the zloty lower ahead the vote, which is scheduled in the evening after end of European trading. Technical resistance at 29.45 may help the koruna not to fall significantly. A positive outcome of the vote might at least temporary positive for the markets.
(CSOB - Investment research)