The negative mood continued on the Czech
FX market. The koruna lost some 10 hellers against the euro to close at 29.60. Moreover,
losses were even higher during the day, as
the koruna touched 29.67. There was no
statistical release or event behind the price
action. Continuing weakness of the forint is
decisive driver. Furthermore, traders still
tend to sell korunas due to earlier heavy
gains of the Czech currency.
Today, negative atmosphere may slowly
disappear as a reaction to the rate cut in
Hungary is overdone. Moreover, the koruna
erased half of its gains from the beginning of
the month and it would be difficult to
continue and break through the 29.80 zone.
The calendar is empty from FX market point
of view.
ČSOB - Investment Research