On Monday the Czech koruna began depreciating against the euro as the parliamentary confidence vote approaches

On Monday the Czech koruna began depreciating against the euro as today’s parliamentary confidence vote comes nearer. The vote is expected after long and boring parliament discussion late in the afternoon or even tomorrow. Due to illness of two ruling coalition deputies the weak parliamentary coalition majority could be endangered, because opposition parties (civic democrats and communists) plan to refuse the approval of the government. However, we expect the government will pass the vote successfully because all coalition MPs should be present due to latest news. Thus the koruna may strengthen supported also by expected rate hike after CNB’s meeting on Thursday.

ČSOB - Investment Research