The Czech koruna bounced back yesterday as it failed to break through EUR/CZK 29.50. It was under some weakening pressure as Central bankers spokes against immanent rate hike. Moreover, regional atmosphere deteriorated, pushing the forint and the zloty lower, too. The koruna opened at 29.50, but immediately changed direction and weakened to 29.64 by the end of the European trading.
Today, the August current account is due, it might post a deficit CZK 12.5 bn. That’s slightly more than in previous months due to higher trade deficit which was influenced by import of Gripen fighters. The outcome around our forecast might be neutral for the market. Thus the koruna might be range bound today.
(CSOB - Investment research)