The Czech koruna continued to slide yesterday on regional technical sell-off. The unit drop from EUR/CZK 29.95 in the morning to 30.05 zone at the end of European trading. Nervousness of the Polish market ahead a Finance Minister Gronicki non-confidence vote and Monetary Policy Council is the key negative factor. Moreover, CE currencies are currently sensitive to weakness of the U.S. dollar and it was the case yesterday.
Today domestic calendar is empty again, thus the zloty might drive the whole region. The currencies may get some relief as Mr. Gronicki is expected to win the vote in the Polish Parliament. On the other hand, expected large Polish interest rate cut on Wednesday may renew a pressure. A meeting of the Czech central bank may play little role, as no one expect any action.
(CSOB - Investment research)