It opened little stronger at the EUR/CZK 30.10 zone, but quickly weakened back to the 30.20 zone. The koruna hovered around this level for the most of the day. Nevertheless, one larger deal sent the EUR/CZK below 30.10 at 14:30. However the unit gave up the gains by the end of the session to close again at the 30.20 zone. The koruna was pushed lower mainly by slightly worse sentiment in the region. Words of Robert Holman, member of CNB Board, that the central bank should not cut rates again, didn’t clearly affect the market. the overall sentiment might drive the koruna. The slightly stronger dollar is negative for the region, so we are skeptical the koruna will move into positive territory.
(CSOB - Investment reserarch)