The Czech koruna continued to develop
sideways pattern in recent two days. On
Wednesday, it mildly strengthened from
EUR/CZK 31.65 zone to 31.55 zone, but the
unit completely ignored the CNB Board
decision hold rates unchanged. Contrary on
Thursday the koruna slightly weakened in
London trading, as domestic market was
closed due to the national holiday. Summing
up, the unit closed at 31.60 zone without any significant incentive.
Today the market may be rather calm as
Czech traders prolong the weekend and only
part of them is ready at their desk. Therefore
the London trading should be decisive.
Moreover no significant event is scheduled,
thus we expect the koruna to be flat.
ČSOB - Investment Research