The unit was range-bound within EUR/CZK 30.10-20 and closed only a touch stronger than opened. There was no relevant incentives for the market. The first quarter current account data only confirmed already revealed temporary high surplus. The balance should quickly slide into a deficit, as income outflows outnumbers foreign trade surplus. but the market might wait for tomorrow when bulk of events is scheduled. First, inflation might put some light on future development of interest rates. Hence a low rise could be negative for the koruna. In the contrary, a high demand in bond tender might be slightly positive for the koruna. Construction activity, released in the morning, fell 29.5 % y/y in April. However, this slowdown has been already apparent because it arises from an extremely high comparison base. In effect, however, the April construction activity did not change significantly compared to March. The koruna might be more or less flat, as yesterday.
(CSOB - Investment research)