The koruna lost against the euro yesterday

The Czech koruna gave up its Wednesday’s gains yesterday. It even opened slightly lower at EUR/CZK 30.30 zone and the currency was under some pressure of the strengthening dollar. It touched daily low at 30.405 around the noon and changed the tide. Hence it close little changed at 30.30 at the end of the day. Yesterday’s price action pointed out that the market is not ready to retreat from the current strong levels even though the dollar climbed slowly but continuously higher. No domestic event affected the market.

Today recent trading band of EUR/CZK 30.25-30.40 may play again. The calendar is empty today and in the days to come. The first important item is in the schedule on Thursday, when central bank’s policy makers will meet. In a longer perspective we still put the risk for the koruna break the trading band to stronger values.

ČSOB