The weaker dollar improved the sentiment towards CE currencies, but the koruna gain only 0.1 % in the morning. The activity on the market remained subdued. As expected slightly weaker rise in industrial output didn’t affect the market. The unit hovered around EUR/CZK 29.90 for the most of the session. However, the koruna lost all its daily gains in American trading and came back to EUR/CZK 29.95 level.
Today the minutes from last CNB meeting are due. They may lure some attention, but they are more important for the bond market. Thus sentiment in the region, respectively the EUR/USD price action might play a decisive role. Let us add that former coalition’s leaders will meet today to discuss a new government again, but we do not expect significant progress. All at all, the koruna might be little moved again.
(CSOB - Investment research)