The Czech koruna continued to rise
yesterday. The market ignored weak May’s
retail sales, which a little bit diminish chance
for a interest rate hike on the next CNB
Board meeting. Thus, the koruna climbed to
20-month high and touched 31.15 during
the day. There is no particular impetus for
the strengthening and traders seems to be
very cautious in pushing the koruna higher.
Nevertheless, we see the unit continue to
rise to 31.00 zone unless PM candidate Gross fails in forming government.
ČSOB - Investment Research