The koruna slid to sideways trade in the same range as on Tuesday, namely EUR/CZK 30.05-30.15. The EUR/CZK opened in the upper limit of the band, but moved down over the session. The May inflation and the bond tender didn’t move the market, as they didn’t break the expectation.
Today, the first quarter GDP is a key domestic event. Higher than expected growth should support the koruna, and the EUR/CZK might break through the 30.00 level. The atmosphere may be very positive, as even the April industrial output topped the forecast. Finally, Slovak economic growth outperformed expectation and improved sentiment in the region. Yet the way for stronger CE currencies is free.
(CSOB - Investment research)