The Czech koruna slid back to the level where it was before the announcement of the central bank. The CNB said on Friday April 9 that it would begin selling their foreign exchange reserve returns on the forex market. However, the koruna failed to break the EUR/CZK 32 level on the news in the last week, therefore the tide turned and traders took their profits. There was also negative influence of the neighboring markets as the forint, the Slovak koruna and the zloty were weakening over the last week.
Today, the koruna should continue weakening, traders will try to push the currency over the level of EUR/CZK 32.80. However, we do not expect they will succeed and the koruna should stop sliding at the end of the day.
ČSOB - Investment Research