The Czech koruna hovered in the tight
range of EUR/CZK 31.49 – 31.55 to close
unchanged on Thursday. The market lacks
any incentive now, the EUR/USD pair was
rather calm compare to previous days and
CE currencies rose or stagnated. On the
other hand, the CZK is under permanent
pressure due to a turn in an interest rate
outlook. The market counted with 75 bps
increase in the repo rate in 6-month horizon
three weeks ago, and now the chance of any
hike in that period is minimal.
Today the calendar is empty, thus only
events abroad may drive the koruna. Some
technical recovery may take part as well,
therefore we expect the koruna to be flat or
slightly stronger.
ČSOB - Investment Research