The Czech koruna got a lift from the zloty yesterday. It opened at EUR/CZK 30.22 and strengthened whole session to touched 30.115 in the afternoon. There was no domestic event behind the price action. In contrary, the drop of producer price index in June waned out any expectation of rate hike in foreseeable future, which could have emerged after higher June consumer inflation. Today although retail sales are due decisive clue might be development on the Polish market. Hence if zloty continue to rise as we expect, the koruna might gain some ground again.
ČSOB - Investment Research