It traded around EUR/CZK 30.10 in the morning, some 0.7 % weaker compare to Tuesday’s close. Despite the initial drop caused by the US dollar rebound the market was rather calm in the rest of the day. The koruna hovered around the opening level almost the whole day. In the end it lost some ground during last hour of the session as the dollar made some gains again. There was no other impetus for the market than the EUR/USD price action.
Today the koruna may move in step with other regional currencies and it may erase part of yesterday’s losses. The dollar seems to take a rest, thus the regional sentiment might temporary improve. However, we do not expect a change in overall negative sentiment towards the region. Moreover, the activity should slowly fade today, since Easter holidays start tomorrow in many European countries.
(CSOB - Investment research)