The Czech koruna traded sideways yesterday. It opened rather weak and touched again Friday’s low at EUR/CZK 30.15 in the morning. Later on, the unit changed tide and slowly drifted higher to close unchanged at 30.08. Of course, the market ignored the January PPI data. There was no other domestic event.
Today the December industry output is due, but 8.3 Y/Y rise hardly significantly affects the market. The industry only mildly lost momentum in December. Thus we expect the trading will be sideways oriented again. The koruna may approach the psychological level 30.00 but may hold back on the weaker side of the level.