The EUR/CZK stayed at the tight range of 30.26-30 until
14:00. Slight weakening of the US dollar
after release of benign inflation improved
the sentiment in Central Europe and the
koruna and its regional peers moved into
positive territory. Hence the koruna closed
stronger by 0.3 % at EUR/CZK 30.20. There
was no domestic incentive for the market.
Central banker Jan Frait didn’t give any new
guidance to the markets in its interview to
Reuters.
Today no indicator is due, hence the koruna
might look at the zloty or the EUR/USD.
Resent drop of the dollar is positive for the
CE markets and opened a room for
strengthening of the regional currencies.
Thus the koruna may erased some losses it
suffered at the beginning of the week.
(CSOB - Investment research)