The Czech koruna inched higher on better
September’s trade balance on Friday. The
unit immediately rose to EUR/CZK 31.42
after the release, later on, the koruna mildly
fell to close at EUER/CZK 31.45. Overall,
the reaction to the figure was not impressive,
partly because traders had already priced in
trade surplus. Thus it seems the koruna is
rather reluctant to rise further. A sharp dollar
fall against the euro likely weighted.
Today October’s inflation is the event of the
day. 0.5 % rise in consumer prices is slightly
supportive for an interest rate hike,
respectively for the koruna. Nevertheless,
we expect traders will take their profits if the
EUR/CZK fail to drop below 31.40.
ČSOB - denní finanční zpravodaj