The Czech koruna strengthened yesterday.
The unit rose during the whole session to
close at daily high EUR/CZK 30.35. The
market was rather thin due to Martin Luther
King holiday in USA. High y/y rise of the
November retail sales was supportive for the
atmosphere on the market. Nevertheless, we are doubtful that the retail sales figure
was important for traders yesterday. Sales
namely rose 8 % y/y but were flat compare
to previous month. Advantageous
comparative base caused extraordinary high
y/y momentum. Thus the change in the
sentiment towards CE market was likely
more precise clue for yesterday’s price
action.
Today, after busy last days, the calendar is
empty. Thus only exporters/importers orders
and sentiment may play a decisive role.
American investors may set atmosphere in
the afternoon as they are back at their desk
after a long weekend. All at all we put the
risk for another mild strengthening of the
koruna.
ČSOB - Investment Research