The EUR/CZK dug below EUR/CZK 29.90 on Friday, as slightly positive sentiment continued. However the koruna lost all gains in the last hour of the European trading. A slide of the U.S. dollar was likely a trigger, but also other CE currencies, which were in e negative territory, might have weighted. The koruna has obviously difficulties to break through 29.85, hence an unsuccessful attempt likely caused squaring of some euro short positions. Today the koruna may slip into sideways trading range again. Regional currencies lack strong momentum, but overall atmosphere is still slightly positive. The domestic calendar is empty for the whole week. Thus regional sentiment and the EUR/USD volatility might drive the market.
(CSOB - Investment research)