The Czech koruna erased all Thursday’s losses on Friday to close at EUR/CZK 30.30 zone. Initially, it continued to trade lower, but the tide changed in the afternoon. No particular domestic event was behind the price action, thus we contributed it to the change in overall sentiment in the region, because even remaining CE currencies strengthened in that time. Nevertheless, it becomes an usual pattern that the koruna rises at the end of the week.
Today no event is scheduled thus the market may have to find inspiration abroad. The dollar drop in Asia trade may push the koruna higher. Nevertheless, waiting for Hungarian rate policy outcome may hold on the region’s currencies.
ČSOB