The Czech koruna was very quiet during Easter holidays, it hovered in tight range of EUR/CZK 30.07-30.15 since Thursday. Thin market ahead of Easter and waiting for a voting congress of the ruling Social democrats dampened any significant market activity. The Social democrats confirmed Stanislav Gross as leader of the party on weekend congress. Hence Gross goes on even as the prime minister. Now, it’s time for junior coalition partner Christian democrats to prove their warning to leave the coalition under such condition. Talks among coalition leader will starts today, and the results is pretty shaky. That’s slightly more probable that the Christian democrats try to find some way how to stay in the government without losing face. Nevertheless, that’s obvious that the government will be weak anyway. No profound reforms should be expected. Today the calendar is empty, but all eyes will be on talks within coalition. That’s not positive environment for the market, hence we expect the koruna to get under slight
pressure. The market might wait for the result of the talks.
(CSOB - Investment research)