Czech koruna recovered on surprising interest rate hike on Thursday. The central bank shocked with a 25 bps rate hike on its October monetary meeting. The unit opened on a sour note attacking the 29.85 level again. Nevertheless, the koruna found ground after the hike and rebounded to the 29.70 zone. Moreover, the currency was able to withstand political turmoil in Poland. The koruna traded in a tine range around 29.70 on Friday as the domestic market was closed due to holiday.
Today the koruna may hover around 29.70 as no stimuli are expected. Moreover atmosphere in the region slowly improves, as the forint recovers and the zloty already may have reached its bottom. Closed Hungarian markets promise not to disturb other regional markets.
(CSOB - Investment research)