The Czech koruna hovered around the EUR/CZK 30.00 level yesterday. The unit ticked higher in the morning, but quickly reversed the direction and moved in to a negative territory. However, losses were low, as the koruna closed at 30.04. There was no particular reason for yesterday’s price action. Weaker zloty and strengthening of the dollar might have weighted. Moreover, the market is cautious, as it moved near to monthly-high area. Finally, a rebound of dollar yields is negative for CE currencies. Today, the May PPI are due, but it should not affect the market. Hence more important might be price action on the zloty market, which awaits fresh macro data. Thus the koruna may be calm for another day.
(CSOB - Investment research)