It hovered in the tight range of CZK 29.91-30.00. There was no incentive for the market. Strengthening of the US dollar made any attempt to push the higher difficult. More over even regional peers was slipped into sideways ranges. Finally, the market waits for today’s confidence vote.
Today, the April PPI is due, but it hardly affect the market. Hence more important will be parliamentary confidence vote. The government is expected to win the vote, as all ruling coalition’s MPs said that they would support the government. Hence we put the risk the koruna will strengthen slightly.
(CSOB - Investment research)