The Czech koruna slid during yesterday’s session mostly due to the negative impact of Polish post election hassle on the whole region. The regional selling pressure sent the koruna to three-month lows. It closed around 29.810 EUR/CZK at the end of the session.
During today highly probable unchanged interest rates staying at record low should not play in favor of the koruna. Nevertheless the most important should be again a political development in neighboring Poland. On the other hand even bad news should not send the koruna below 29.850 CZK/EUR, where it found solid support levels earlier during this month.
(CSOB - Investment research)