National holiday left the Czech koruna completely unarmed to influence of other regional currencies yesterday. While it significantly recovered on Tuesday, it plunged back to fifties yesterday, as it was affected by a weak forint. On Tuesday the koruna gained from rumors that Hyundai would invest USD 2 bn in a new factory in Czechia. Hence the EUR/CZK rose from Tuesday’s low 29.35 to 29.58 on Wednesday.
Today the only event is the meeting of the central bank. However, it might have little importance for the markets as no action is expected. On the other hand, some aftermath comments from the bank might be worth to listen. As the EUR/CZK approached its resistance area at 29.60, the unit might bounce back.
(CSOB - Investment research)