The Czech koruna got under downward pressure in the morning on Tuesday

The Czech koruna got under downward pressure in the morning on Tuesday, due to the dovish comment of governor Tuma. Hence the koruna traded as weak as EUR/CZK 29.84 at the beginning of the session. Nevertheless, the market failed to break the resistance level at 29.80 permanently and bounced back. Rather positive mood in the region was helpful, too. Thus the koruna slowly came back into the 29.70 zone by the end of the trading. Today the calendar is unattractive from the FX market point of view, therefore regional mood may move the unit. Strong dollar in the morning trade may counterbalance positive effect of recovery of U.S. treasuries. Therefore, the koruna may stay range-bound.

(CSOB - Investment research)