The Czech koruna was pretty quiet for the most of the session yesterday, as it hovered just on the strong side of the EUR/CZK 30.00 level. The unit ignored all events, the central bank’s meeting or development on other markets. Yet, one hour ahead of the end of the trading several koruna-sell orders pushed the koruna to 30.10. hence the unit underperformed its CE peers. Today the June budget hardly affects the market. Yet some investors may square their position ahead of long weekend, which could imply slight volatility. All at all, we put the risk for the koruna to erase yesterday’s losses.
(CSOB - Investment research)