The Czech koruna was pretty quiet on Friday, as it hovered within tight range of EUR/CZK 29.46-51. The unit ignored the better-than-expected January industrial output, which came in at 7.2 % y/y. There was no other domestic or foreign important stimuli for the market.
Today the calendar is rather busy, since the PPI and the current account are due. However, neither indicator may grab a lot of attention of the market. The PPI is less important inflation measure and the current account should not surprise significantly, since its decisive part, the trade balance, is already known. Nevertheless an expected pretty low deficit might improve the market sentiment. Thus the koruna may continue to trade sideways, but the market may be more lively than on Friday.
(CSOB - Investment research)