The Czech koruna rebounded yesterday, as it gained from improvement in sentiment toward riskier assets. The unit opened rather weak at EUR/CZK 30.38, but it immediately
started to climb higher. Hence it gained almost one percent, since it traded at EUR/CZK 30.12 around the end of the European session. Later on, it lost part of its gains in off-shore trading.
There was no domestic event behind the price action, but solely better atmosphere in the whole region. The talks about the new government didn’t affect the market. Vice-governor Singer also failed to move the market, as he spoke only on interest rates.
Today the calendar is again empty thus the koruna might be on mercy of the regional sentiment. The unit might wane out overnight’s losses and return to the EUR/CZK 30.10 zone.
(CSOB - Investment research)