The koruna approaches to the psycho level of 30,00

The Czech koruna opened stronger again yesterday. It jumped into EUR/CZK 30.10 zone in the morning and hovered around this level for the rest of the day. The unit touched a new more than two-year high at EUR/CZK 30.06. A test of a psychological level 30.00 is in the cards in the days to come. Although some traders doubt that the test could be successful, we put the risk that the koruna strengthens below this psycho level. On the other hand, the koruna’s recent gains are excessive and not backed by sound fundamentals, therefore a correction in longer horizon is likely. Today the koruna may stay above the key level of EUR/CZK 30.00, because no event is scheduled. Tomorrow’s central bank meeting may calm down koruna’s rise, because comments against the strong koruna are likely.

ČSOB