It opened at EUR/CZK 29.68 and rose to a new 2.5-year high 29.58 by the late afternoon. However, it mildly ease at the end of the day to close at EUR/CZK 29.64. The koruna gained from positive current mood again, as yesterday’s releases, Issuance calendar and state budget, more in bond section) were little surprising. Nevertheless, continuing rise of Czech bonds might have weighted.
Today the calendar is empty thus traders may look around and inspire from other regional currencies. The Polish zloty drop might contaminate even the koruna. Moreover another round of talks among coalition leaders is plan today. Hence a sideways trade after some morning losses is the most likely scenario today.
(CSOB Investment research)