. Temporarily negative sentiment towards Polish zloty weighted the most. The EUR/CZK returned above the 30.00 level, while it opened around 29.90. There was no domestic event behind the price action.
Today, fresh figures showed that industry output was flat in March, namely 0.1 % y/y. We could blame lower number of working days and disadvantageous comparative base. We are cautious to point that the economy is slowing, because unemployment data posted different picture of the economy on Monday. The figure is negative for the koruna, but we do not expect any significant reaction. The market might ignore government bond tender, as Czech yields are definitely not attractive for foreign investors. Hence traders may look at the zloty again. The most likely scenario is that the koruna will slip into sideways range 30.0-30.15.
(CSOB - Investment research)