The Czech koruna inched higher again
yesterday. The atmosphere on the market
gets to be boring. Everyday the unit made
some small gains, but the movement is
usually pretty slow and careful. Yesterday it
touched EUR/CZK 30.705 to close only little
weaker. There was no particular incentive
for the market yesterday. The central bank
meeting minutes failed to draw attention of
traders.
Today released November’s inflation at –0.1
% hardly changes the market sentiment.
Thus, we expect another small gains for the
koruna. The question is if the sentiment
changes by the end of the year. Foreign
investors seem to hold their long koruna’s
positions to the next year.
ČSOB - Investment Research