The Czech koruna inched higher again yesterday

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