The Czech koruna corrected all last week's gains on Monday. The currency was not able break the 32.25 level in the morning therefore it became evident that the tide would change. The koruna weakened in two waves in the afternoon on a client decent order. The Slovak koruna's breach below 40 level probably weighted as well because investors use the Czech koruna funding for investment into other Central Europeans currencies.
Today, March's trade balance should attract attention of the market. The market expects the balance to slip into a deficit of CZK 2 bn. If the balance end up in a surplus as previous month, we will see the koruna stronger again. However, we do not expect that, therefore the koruna will stay in 32.45 zone.
ČSOB Investment Research