The Czech koruna opened at 29,280 and strengthened for the seventh day in row during Friday’s session. In early trading CNB´s minutes, which reduced the probability of further fast hiking, and the regional sentiment were driving the koruna weaker. Nevertheless later during the day with weaker than expected US payrolls the koruna came back to positive trend and despite rather negative regional sentiment ended the session stronger at 29.245 EUR/CZK.
For today the koruna should stay strong and might break further technical levels at 29.15 EUR/CZK. September’s trade balance in early morning ended in 4 bln. surplus, which is less than market expectation. On the other side it is still rather positive fundamental support for the Czech currency.
(CSOB - Investment research)