The Czech koruna tested new 2-year high
of EUR/CZK 30.22 yesterday. The currency
rose mainly in the morning, later on, it
hovered around the EUR/CZK 30.25 level. There was no new incentive for the move.
Moreover, lower inflation and higher
unemployment, released yesterday, actually
support opposite direction of the market.
Nevertheless long-term factors act in favor
of the koruna. Furthermore, the sentiment
changed in the region, as Slovak koruna
approached to an all time high.
Today industry output is in the calendar. The
output rose 10.9 % Y/Y, slightly less than
expected. Nevertheless, rather strong figure
should support recent positive atmosphere
on the market. Thus the koruna has a room
to move further south.
ČSOB - Investment Research