The Czech koruna started in a weakening
mode yesterday and it slipped to session low
of EURCZK 30.46 by the noon. Another
strengthening of the dollar was likely behind.
However the atmosphere reversed in the
afternoon and the koruna clawed back to
EUR/CZK 30.34 at the end of the day. As we
wrote yesterday all factors except of the
strong dollar was positive for the currency
now.
Nevertheless, the dollar development should
play a decisive role today. The US payrolls may set sentiment on key currencies and it
may affect CE currencies too. Poor payrolls
are bad for the dollar and positive for
emerging markets and vice versa. Thus the
market may be range bound in the morning.
Traders will wait for US data due at 14:30.
ČSOB - Invetment Research