The Czech koruna opened at 29.350. Despite quite significant weakening on Monday, it continued on loosing during yesterday as well. There is no explicit explanation for the development. Koruna was under pressure probably because Pincius Warburg sold it’s share in Zentiva and other currencies in the region weakened as well. Nevertheless during afternoon it regained it’s previous positions and finally even strengthened up to 29.320 EUR/CZK.
For today as for the rest of the week there are no significant domestic events that could influence Czech koruna. Hence it will be influenced mainly by sentiment in emerging markets after FOMC meeting. Generally, we believe there is more space for strengthening in a medium term horizon, but the slightly hawkish Fed might postpone CZK’s gains .
(CSOB - Investment research)