The Czech koruna almost touched EUR/CZK 30.40 yesterday morning as it reflected the US dollar had climbed to a new 7-month high against the euro. Nevertheless, the unit erased all losses by the end of the session to close unchanged from Friday’s close at 30.30. Slightly weaker US dollar lifted some pressure on the koruna in the afternoon. Except of EUR/USD volatility there was no impetus for yesterday’s price action.
Today the koruna may develop similarly to yesterday, because no event is scheduled again. Overall atmosphere is not positive for the whole region ahead of the referendum in France on Sunday. Meeting of the CNB’s Board, due on Thursday, may not disturb the market, because any action is rather unlikely. Hence the koruna may look at eurodollar market.
(CSOB - Investment research)