Rebound of the U.S. dollar and sell-off on core bond markets impede a slide of CE currencies. There was even attempts to push the koruna into positive territory, but they failed. The key obstacle is today’s meeting of Polish MPC, which should cut rates significantly. It impedes to zloty and other CE currencies to strengthen.
Today domestic calendar is empty, hence action of the zloty might be a clue. As the Polish currency is poised to weaken, the koruna may also dip into negative territory.
(CSOB - Investment research)